37 Fairmead Avenue, Westcliff-On-Sea, Essex

Description

A one bedroom flat situated within the sought after location, offered with a tenant in situ and considered an ideal opportunity for an investor or cash buyer. The flat boasts both a large bedroom and reception area with direct access to the private garden. There are some 59 years left on the lease and the property currently earns £9,420 p.a. with potential to increase the yield.

Accommodation

Ground Floor: Entrance hall; Bedroom - 13'8 x 10'2; Living room - 16'7 x 13'5; Bathroom - 7'6 x 4'11; Kitchen - 9'2 x 7'0.

Location

Situated within a sought after location.

Tenure / Property Information

Investment Analysis

The supplied sold evidence is for leasehold flats at 37A and 31 Fairmead Avenue rather than clearly for 37 Fairmead Avenue. The 37A sales range from £100,000 in April 2022 to £160,000 in December 2023. On that limited evidence, a broad scenario range of £100,000–£160,000 is supportable, with £130,000 used as a midpoint estimate. The subject's remaining 59-year lease and unknown leasehold costs could materially affect value, refinancing and saleability; no lease-adjusted valuation is available.

Investment Snapshot

Strategy Recommendation

Consider only as a cautious BTL or cash purchase, subject to satisfactory legal-pack review, tenancy verification and confirmation of leasehold charges and lease-extension implications. Do not rely on the upper rental evidence or refinance scenario without further evidence.

Works Required

No refurbishment works are specified in the supplied evidence. The property should be inspected and the legal pack reviewed before allowing for works, lease costs or compliance expenditure.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the midpoint GDV estimate of £130,000, a 75% refinance would be approximately £97,500. However, total project cost cannot be calculated because refurbishment costs, disbursements, ground rent, service charge and other legal-pack costs are unknown. The 59-year lease may also restrict lender appetite and refinancing proceeds, so BRRR viability is unconfirmed.

Buy-to-Let Analysis

The existing rent is £9,420 per annum, or £785 pcm, producing an indicative gross yield of 11.08% against the £85,000 guide before fees, leasehold costs, finance, maintenance and management. Advertised local asking rents range from £925 to £1,125 pcm, but these are not achieved rents and do not establish that the subject can be re-let at those levels. BTL viability is therefore attractive on the guide price but highly dependent on the tenancy terms, lease costs and remaining lease term.

Flip Analysis

The evidence supports a broad resale-value scenario of £100,000–£160,000, with £130,000 as a midpoint estimate. No refurbishment allowance, selling-cost allowance or lease-related cost is supplied, so a reliable flip surplus and maximum bid cannot be calculated. The 59-year lease is a significant resale and valuation consideration.

Investor Risks & Due Diligence

• Only 59 years remain on the lease, which may affect value, lender appetite, refinancing and resale.

• Annual ground rent, service charge, review provisions and other lease terms are not supplied.

• The legal pack may contain additional disbursements, seller-cost reimbursements, legal fees, transfer fees or search fees.

• The current tenancy terms, rent review position, deposit and tenant status are not supplied.

• Advertised rents are asking rents rather than achieved rents and may not be attainable for this flat.

• No condition report or refurbishment cost evidence is supplied.

Recommendation

Consider only as a cautious BTL or cash purchase, subject to satisfactory legal-pack review, tenancy verification and confirmation of leasehold charges and lease-extension implications. Do not rely on the upper rental evidence or refinance scenario without further evidence.

Strategy Rating

Analysis Confidence

There is useful same-road sold and rental evidence plus confirmed current rent, but the comparables are not clearly the subject property and key lease, tenancy, cost and condition information is absent.