31 Mersea Road, Colchester, Essex, CO2 7ES

Description

A Victorian three bedroom home set within close proximity of Colchester train station and city centre.

Accommodation

Three double bedrooms, large open plan lounge/diner, modern kitchen, family bathroom with shower cubicle and bath.

Location

Within walking distance to Colchester city centre and train station, as well as local schools and other transport links.

Tenure / Property Information

Investment Analysis

The strongest evidence is the same property selling for £315,000 on 15 February 2022. Earlier sales were £204,000 in 2017 and £147,500 in 2011. The £315,000 figure is a historic completed sale rather than a current valuation; no current comparable evidence or formal valuation is supplied. The £180,000 guide implies substantial apparent margin, subject to legal, condition, market-value and auction-fee due diligence.

Investment Snapshot

Strategy Recommendation

Proceed only after confirming vacant possession or tenancy status, legal title, current condition and a current valuation. The guide offers apparent value against the historic same-property sale, but the limited rental and valuation evidence means a cautious buy-and-hold assessment is preferable to relying on a BRRR or flip outcome.

Works Required

No specific refurbishment works are evidenced. The description states that the kitchen is modern and the property has a family bathroom, so works should be limited to inspection, safety checks and any repairs identified by survey or legal due diligence; no cost allowance can be supported.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At a £180,000 purchase price, the stated auction charges and no evidenced refurbishment allowance give a base cost of £182,880. A 75% refinance against the historic £315,000 sale benchmark would indicate £236,250, exceeding this base cost by approximately £53,370. This is not a reliable cash-out forecast because the GDV is based on a 2022 sale, current lending valuation, finance costs, taxes, legal costs and any works are unknown.

Buy-to-Let Analysis

Using the supplied £895 pcm advertised asking rent as an indicative proxy, annual gross rent is £10,740. This produces approximately 5.97% gross yield on the £180,000 guide and 5.87% on the guide plus the stated £1,680 buyer premium and £1,200 administration charge. The rent evidence is for Tolleshunt D'Arcy rather than this property and is an asking rent, so the BTL assessment is indicative only. Operating costs, finance costs, voids and tax are not supplied.

Flip Analysis

On the supplied historic £315,000 completed sale benchmark, the apparent gross difference against the £182,880 base acquisition cost is £132,120 before selling costs, finance, tax and any works. No supported selling-cost allowance or current valuation is available, so a formal flip surplus cannot be calculated. The historic benchmark should not be treated as a current resale value without updated valuation evidence.

Investor Risks & Due Diligence

• The £315,000 GDV benchmark is a February 2022 sale and may not represent current market value.

• The only rental evidence is an advertised £895 pcm asking rent in Tolleshunt D'Arcy, not an achieved rent for this property.

• Occupancy status is not supplied, so vacant possession and any tenancy issues require confirmation.

• Condition details are limited and no refurbishment budget can be supported.

• Additional search fees, seller-cost reimbursements, legal fees, transfer fees and other disbursements may be payable but are unquantified.

• Finance costs, taxation, selling costs and lender valuation criteria are not supplied.

Recommendation

Proceed only after confirming vacant possession or tenancy status, legal title, current condition and a current valuation. The guide offers apparent value against the historic same-property sale, but the limited rental and valuation evidence means a cautious buy-and-hold assessment is preferable to relying on a BRRR or flip outcome.

Strategy Rating

Analysis Confidence

There is strong same-property completed-sale evidence and clear auction charges, but the principal GDV evidence is historic, rental evidence relates to a different area, condition and occupancy are not fully evidenced, and other completion costs are unspecified.