40A Alma Street, Lowestoft, Suffolk

Description

Vacant one bedroom freehold property in good order throughout, recently become vacant. The property is situated on the North side of the seaside town of Lowestoft. It has been an investment for the landlord for over 13 years with only 2 tenants, and is well cared for with a modern kitchen and bathroom and neutral decoration throughout. Cash buyers only due to non standard construction.

Accommodation

Ground floor: entrance hall, storage cupboard, sitting room, kitchen, bathroom and staircase. First floor: bedroom.

Location

Situated on the North side of the seaside town of Lowestoft.

Tenure / Property Information

Investment Analysis

No completed-sale comparables or formal valuation evidence is supplied, so GDV and market value cannot be established. The auction guide is £50,000–£60,000 plus fees. At the lower guide, the supplied £375 pcm advertised rent equates to a 9.0% gross yield before costs; at £60,000 it equates to 7.5%. The auctioneer reference to £9,000 pa is described as a potential yield and cannot be reconciled reliably with the £375 pcm rental listing, so it has not been used as the rent basis.

Investment Snapshot

Strategy Recommendation

Consider only as a cautious cash BTL at a price close to or below the lower guide, subject to survey, legal-pack review and validation of achievable rent. Do not rely on BRRR or a flip without independent valuation and construction advice.

Works Required

The description states the property is in good order with a modern kitchen, modern bathroom and neutral decoration, so no refurbishment works are evidenced. Allow for inspection, safety checks and any remedial works identified in the legal pack or survey; costs are not supplied.

Rental & Market Context

Potential BRRR Position

A BRRR assessment cannot be completed because no GDV, completed-sale comparables, finance terms or refinance value are supplied. The cash-buyer requirement and non-standard construction materially restrict the refinance assumption. At the lower guide, the purchase plus stated buyer and admin charges is £52,340 before any unknown legal-pack disbursements or other costs.

Buy-to-Let Analysis

Using the only specific rental evidence of £375 pcm advertised asking rent, annual gross rent is £4,500. At the £50,000 lower guide, gross yield is 9.0%; including the stated £1,140 buyer premium and £1,200 admin charge, the yield is approximately 8.6%. This excludes finance, tax, insurance, maintenance, voids, management and any disbursements. The rent is advertised rather than achieved, and cash-only lending restrictions apply because of non-standard construction.

Flip Analysis

A flip surplus cannot be calculated because no supported GDV, resale evidence, selling allowance or refurbishment budget is supplied. The property is described as being in good order, but resale viability remains unproven without comparable sales and confirmation of marketability of the non-standard construction.

Investor Risks & Due Diligence

• Cash buyers only because of non-standard construction, limiting finance and resale options.

• No completed-sale comparables or formal valuation are supplied, so GDV and maximum bid cannot be supported.

• The £375 pcm figure is an advertised asking rent, not an achieved rent.

• EPC rating E may create future compliance or improvement considerations.

• No garden or conventional parking is provided; the external area is described as suitable for bins, a motorbike/cycle and a small shed.

• Unknown legal-pack disbursements, search fees, seller-cost reimbursements, legal fees and transfer fees may be payable.

• The auctioneer's £9,000 pa potential-yield reference is not sufficiently clear to use as a reliable rent figure.

Recommendation

Consider only as a cautious cash BTL at a price close to or below the lower guide, subject to survey, legal-pack review and validation of achievable rent. Do not rely on BRRR or a flip without independent valuation and construction advice.

Strategy Rating

Analysis Confidence

The property description, guide, known auction charges and one advertised rent are supplied, but there are no completed-sale comparables, formal valuation, works budget, finance terms or confirmed achieved rent. The auctioneer's £9,000 pa reference is also unclear.