351 Luton Road, Chatham, Kent ME4 5BJ

Description

A two-bedroom mid-terrace house subject to a periodic tenancy producing £9,100 per annum. Accommodation includes two reception rooms, kitchen, two bedrooms and bathroom, with a rear garden. Freehold, EPC D and six-week completion.

Location

Luton Road is in Chatham, close to local shops, Gillingham Park and transport links from Chatham and Gillingham stations.

Investment Analysis

Investment Snapshot

Property & Refurbishment

I would initially allow £10,000–£20,000 for the works indicated by the listing, investor-grade finishing and contingency. This is an HB/AI feasibility allowance rather than a contractor quotation and should be replaced by survey and itemised trade pricing before bidding.

Rental Analysis

The auction listing provides current income of £9,100 per annum / approx. £758 pcm. This produces an immediate gross yield of about 11.4% on the £80,000 guide. Market rent is likely higher, but any increase must follow the tenancy terms and statutory process. This equates to approximately £11,400–£13,200 per annum and 14.2%–16.5% gross on the guide. At midpoint rent and works, gross yield on guide plus works is about 12.9% before finance, management, maintenance, insurance, compliance, voids and tax.

GDV / Resale Analysis

For feasibility I would use an indicative £165,000–£195,000 completed-value range. This is an AI-assisted investment appraisal estimate and not a formal RICS valuation. Using midpoint assumptions gives an estimated completed value of about £180,000 against guide-plus-midpoint-works of approximately £95,000.

Properties Sold Within Approx. 5 Miles

The 2021 £165,000 sale is the most useful same-postcode evidence, although it is now several years old. More recent Medway comparables should be checked before relying on the upper GDV.

Potential BRRR Position

At the midpoint GDV of approximately £180,000, a purely illustrative 75% LTV refinance would be around £135,000. Against guide plus midpoint works of approximately £95,000, this should be viewed only as a sensitivity test; lender valuation, construction, lease length, rental stress tests and borrower criteria determine the actual refinance.

Flip Analysis

A resale strategy should be tested against the conservative end of the £165,000–£195,000 GDV range and must deduct acquisition tax, the £1,800 auction administration charge, legal fees, finance, holding costs, refurbishment, contingency and selling costs. Headline uplift is not the same as net profit.

Investor Risks & Due Diligence

• Check the legal pack, title and all additional disbursements.




• Obtain a full building survey and contractor quotations.




• Verify achievable rent against current completed lettings.




• Verify GDV against recent like-for-like sold evidence.

Recommendation

Preferred strategy: Buy-to-Let / Rent Optimisation. The final decision should be based on verified works costs, rent, legal position and comparable-supported end value rather than guide price alone.

Strategy Rating

BRRR: ★★★☆☆

Buy-to-Let: ★★★★★

Flip: ★★★☆☆

Development: ★☆☆☆☆