33-35 & 33A Cape Hill, Smethwick, West Midlands, B66 4RX

Description

A prominent freehold three storey property, having asset management potential, currently comprising two retail investments on the ground floor together with two vacant upper floors in need of refurbishment/ development but considered suitable for a variety of alternative uses including residential, subject to any necessary planning permission. Current Rental Income: £19,800 Per Annum.

Location

33-35 & 33A Cape Hill, Smethwick, West Midlands, B66 4RX Full listing coordinates are used for mapping: 52.486992, -1.960130.

Investment Analysis

Investment Snapshot

Works Required

• Planning/title review

• Topographical/ground investigation

• Access and utilities review

• Professional fees / viability study

HB working works allowance: £10,000–£35,000. This is based on the auction description, accommodation and visible condition indicators; replace it with surveyor/contractor evidence before bidding.

Rental & Market Context

The auctioneer/addendum states current income of £19,800 p.a. This is approximately 11.3% gross on the current guide. HB's working market-rent range is £1,575–£1,975 pcm (£18,900–£23,700 p.a.). Compare the market range with the existing tenancy terms before assuming any uplift.

Sold within 5m radius

Reliable recent like-for-like sold comparables were not established from the supplied scrape for this individual property. No comparable addresses or prices have been invented. Before bidding, verify the HB end-value range against HM Land Registry / current local sold evidence, matching property type, size, tenure, condition and micro-location.

GDV Assessment

A defensible GDV is not stated because this lot requires a specialist commercial/development appraisal or a costed planning scheme. Assigning a residential GDV would be misleading.

Strategy Recommendation

Preferred strategy: Development. The working purchase range is £175,000–£189,000 and the works allowance is £10,000–£35,000. The key question is whether the legal pack, condition and local market evidence support the income/end-value assumptions without exhausting contingency.

Potential BRRR Position

Standard BRRR is not appropriate. Model planning probability, development finance, build costs, professional fees, statutory contributions and completed-scheme value.

Flip Analysis

A responsible flip margin cannot be calculated without a defensible end-use/valuation basis.

Development Analysis

Confirm planning status, red-line boundary, access, utilities/drainage, CIL/S106, ground conditions and professional fees. Derive land value backwards only from a fully costed scheme.

Commercial / Mixed-Use Analysis

Review passing rent/ERV, lease length, tenant covenant, repairs, VAT, business rates, service charges, vacant possession and lender criteria. Appraise residential and commercial elements separately where mixed use.

Investor Risks & Due Diligence

• Read the complete Bond Wolfe legal pack and special conditions, including buyer/admin fees

• Verify title, tenure, lease length, tenancy agreements and vacant-possession status

• Replace HB works assumptions with surveyor/contractor pricing

• Confirm mortgage/bridging and insurance availability for the exact asset type

• Re-check local rents and property-level sold comparables immediately before bidding

Maximum Bid Analysis

A defensible maximum bid requires a specialist valuation or costed development/commercial scheme. Do not derive it from the guide alone.

Recommendation

Overall HB view: Development. Risk level: High; analysis confidence: Low. The principal sensitivities are planning/site costs. Proceed only if legal and physical due diligence supports the assumptions and leaves adequate contingency.

Strategy Rating

Development: ★★★★☆ | Income: ★★☆☆☆ | Resale: ★★★☆☆

Research Sources

https://www.bondwolfe.com/auctions/properties/360362-property-auction-smethwick/ | https://www.bondwolfe.com/auction/3451/ | https://www.bondwolfe.com/addendum/