39 Telford Close, Smethwick, B67 5PF

Description

A vacant freehold end terraced property which stands back from the road behind a foregarden. The property benefits from having gas central heating and double glazing however is in need of modernisation works throughout.

Accommodation

Ground Floor: Hall, Reception Room, Dining Kitchen. First Floor: Landing, Three Bedrooms, Bathroom/WC. Outside: Gardens.

Location

The property stands back from the road behind a foregarden.

Tenure / Property Information

Investment Analysis

The five supplied sold comparables on Telford Close range from £187,500 to £230,000, with an average of £216,500. A supported scenario range is £208,000 to £230,000, using the more recent lower and upper comparable evidence. The base GDV is set at the comparable average, subject to condition, specification and exact comparability. The property is described as requiring modernisation throughout, but no detailed schedule or cost evidence is supplied.

Investment Snapshot

Strategy Recommendation

Potential value opportunity for a refurbishment-led BTL or resale, but only subject to a full survey, detailed works quotations, legal-pack review and confirmation of all buyer and completion costs. Do not bid to a fixed maximum until those costs are known.

Works Required

Modernisation throughout, based on the auction description. The supplied evidence does not identify specific defective elements or provide sufficient scope to cost works reliably; survey, quotations and legal-pack review are required.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the guide price, the known acquisition price plus administration charge is £61,700 before works, taxes, finance and other costs. A 75% refinance against the £216,500 base GDV would be £162,375, but cash left in cannot be calculated without a supported refurbishment budget and complete cost schedule. Refinance also depends on lender valuation, rent, condition and finance terms.

Buy-to-Let Analysis

The supplied rental evidence is one advertised asking rent of £1,150 pcm, not an achieved rent. At the £59,000 guide, this implies £13,800 annual gross rent and a headline gross yield of 23.39%. A yield on total project cost cannot be established because refurbishment costs and any additional completion costs are unknown. The £2,700 administration charge is known and payable, while other special-condition costs are not supplied.

Flip Analysis

The supported base GDV is £216,500, with comparable evidence indicating a £208,000–£230,000 range. A flip surplus cannot be calculated because refurbishment costs, selling costs, finance costs and other completion costs are not supplied. The apparent guide-to-GDV margin should therefore not be treated as profit.

Investor Risks & Due Diligence

• The property is stated to require modernisation throughout, but the extent and cost of works are unknown.

• The rental figure is an advertised asking rent rather than an achieved or passing rent.

• The £2,700 administration charge is known, but additional special-condition costs are not supplied.

• Stamp duty, government taxes, finance costs and selling costs are excluded from the available cost evidence.

• The comparable sales range is £187,500 to £230,000, creating valuation uncertainty.

• A refinance at 75% of GDV is indicative only and depends on lender valuation, condition, rent and finance terms.

Recommendation

Potential value opportunity for a refurbishment-led BTL or resale, but only subject to a full survey, detailed works quotations, legal-pack review and confirmation of all buyer and completion costs. Do not bid to a fixed maximum until those costs are known.

Strategy Rating

Analysis Confidence

There are five same-road sold comparables, one advertised rental figure and a stated guide/admin charge, but no detailed condition schedule, refurbishment costs, full fees, achieved rent or special-condition costs.