40 Stromness Road, Southend-on-Sea, Essex

Description

This vacant leasehold two bedroom ground floor flat requires updating / modernisation throughout. Located a short distance from transport links and local shops the property is also within half a mile of Southend East railway station. It is considered that the property would suit both owner occupiers and investors alike.

Accommodation

Communal Entrance Lobby; Personal Entrance Door to: Entrance Hall; Lounge: 13'6 in bay x 12'2 max; Kitchen: 11'6 x 5'5 plus 7'6 x 5'3; Bedroom One: 10'9 x 10'1; Bedroom Two / Study / Nursery: 7'7 x 5'7; Bathroom: 6'1 x 4'9; Separate WC.

Location

Located a short distance from transport links and local shops, and within half a mile of Southend East railway station.

Tenure / Property Information

Investment Analysis

Completed sales evidence on Stromness Road ranges from £90,000 to £190,000. The same-address 40A sales at £90,000 and £120,000 provide the closest, but inconsistent, evidence. Other nearby flat sales at £180,000–£190,000 may reflect differences in condition, size or specification, which are not supplied. A cautious base GDV of £180,000 is used, with a wide evidence-supported scenario range of £120,000–£190,000. The £95,000 guide is before unspecified fees and the property requires updating/modernisation throughout.

Investment Snapshot

Strategy Recommendation

Proceed only after confirming the lease terms, full auction costs, service charge/ground rent, refurbishment scope and achievable resale or rental value. The guide appears potentially attractive against the supplied sales and asking-rent evidence, but the missing costs and broad comparable range prevent a firm investment decision.

Works Required

Updating and modernisation throughout, as stated in the description. The supplied evidence does not specify particular defective elements, scope, specifications or refurbishment costs, so no detailed works allowance is assumed.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £95,000 guide, the 75% refinance figure on the £180,000 base GDV is £135,000. However, the lease length, refurbishment cost, valuation basis, lender criteria and all purchase costs are unknown. Cash left in and equity cannot therefore be calculated reliably. The wide comparable-sales range also creates significant refinance risk.

Buy-to-Let Analysis

The only rental evidence is an advertised asking rent of £1,200 pcm, equivalent to £14,400 annually; it is not an achieved or passing rent. Against the £95,000 guide, the gross yield is approximately 15.16% before unspecified auction fees, refurbishment, finance, service charges, ground rent, tax and operating costs. A yield on total project cost cannot be established because refurbishment and buyer costs are not supplied.

Flip Analysis

The evidence supports a base GDV of £180,000, but refurbishment costs, selling costs and purchase fees are unavailable. A reliable flip surplus or maximum bid cannot therefore be calculated. The £120,000–£190,000 comparable range indicates substantial resale-value uncertainty.

Investor Risks & Due Diligence

• Lease term is not supplied and may materially affect value, mortgageability and resale.

• The flat requires updating/modernisation throughout, but the work scope and cost are unknown.

• Buyer, administration and other auction fees are unspecified despite the guide being stated as plus fees.

• Comparable sales range from £90,000 to £190,000, creating substantial GDV uncertainty.

• The £1,200 pcm figure is an advertised asking rent rather than achieved or passing rent.

• No service charge, ground rent, parking, heating or EPC information is supplied.

• Refinance proceeds may differ materially from the 75% of GDV illustration because lender valuation and criteria are unknown.

Recommendation

Proceed only after confirming the lease terms, full auction costs, service charge/ground rent, refurbishment scope and achievable resale or rental value. The guide appears potentially attractive against the supplied sales and asking-rent evidence, but the missing costs and broad comparable range prevent a firm investment decision.

Strategy Rating

Analysis Confidence

There is useful completed-sales and asking-rent evidence, but no lease details, EPC, council tax, service-charge information, refurbishment costs, buyer/admin fees or achieved rent. The comparables also show a wide value range.