42 - 56 City Exchange, Alfred Gelder Street, Lowgate, HULL, East Yorkshire, HU1 1AA

Description

An exceptional opportunity to acquire a substantial residential portfolio within the landmark City Exchange development in the heart of Hull City Centre. Situated on the first floor of the historic Grade II listed Corn Exchange building. Apartments 42 to 56 comprise 15 self-contained apartments, including 12 one-bedroom units, 2 large two-bedroom units and a studio apartment. The apartments benefit from modern fitted kitchens, contemporary bathrooms and well-designed open-plan living accommodation, whilst retaining the character and charm associated with this prestigious period conversion. The development is well positioned to benefit from continued demand for centrally located residential accommodation. The portfolio is fully let and produces a combined income of £11,225 per month (£134,700 per annum).

Accommodation

Fifteen apartments: 12 one-bedroom units, 2 two-bedroom units and 1 studio apartment. Studio: entrance, open-plan living/bedroom area, kitchen and shower room. One-bedroom apartments: entrance hall, open-plan living/kitchen area, double bedroom and bathroom. Two-bedroom apartments: entrance hall, open-plan lounge/kitchen, two bedrooms and bathroom; some layouts include an en-suite to the principal bedroom.

Location

Grade II listed City Exchange development in the heart of Hull city centre, occupying a prominent position within walking distance of restaurants, bars, retail facilities, museums and employment hubs.

Tenure / Property Information

Investment Analysis

The portfolio comprises 15 leasehold apartments and is fully let at a stated combined income of £11,225 per month. Supplied City Exchange sales range from £37,000 to £87,500 per flat, but the individual unit types and sizes are not identified, so a reliable portfolio GDV cannot be derived. The £37,893 annual service charge and £250 ground rent are stated as unverified, and additional seller fees may apply.

Investment Snapshot

Strategy Recommendation

Consider as an income-led acquisition only if the rent roll, tenancy agreements, service-charge accounts, lease terms and all special-condition fees are verified. Do not bid on the basis of a resale GDV that cannot currently be evidenced.

Works Required

No refurbishment works are identified in the supplied evidence. The apartments are described as having modern fitted kitchens and contemporary bathrooms. Allowance excludes any undisclosed repairs, compliance works, voids or tenant-related costs.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot establish GDV or refinance proceeds because the supplied flat sales cannot be matched to the 12 one-bedroom, two-bedroom and studio units, and no lender valuation or yield evidence is provided. The long lease is favourable in duration, but leasehold costs and the unverified service charge require due diligence.

Buy-to-Let Analysis

At the £1,250,000 guide, the stated gross rent of £134,700 per annum equates to approximately 10.78% gross yield. Including the known £1,800 administration charge, the yield is approximately 10.76%. The stated £37,893 annual service charge would materially reduce the pre-finance return, but it is unverified and other costs, including seller fees, are not quantified. External rental comparables and tenancy details were not supplied.

Flip Analysis

A flip appraisal cannot be supported. There is no reliable portfolio GDV, no supported resale-cost allowance and no evidence of refurbishment upside. The portfolio is already fully let, making an income strategy more directly evidenced than a resale strategy.

Investor Risks & Due Diligence

• The £37,893 annual service charge and £250 ground rent are vendor figures stated as unverified.

• Additional seller fees may be payable under the special conditions, but their amounts are not supplied.

• Tenancy agreements, rent schedules, arrears, deposits, lease expiries and management costs are not provided.

• The supplied sales comparables do not identify the relevant flat types, sizes or condition, preventing reliable portfolio valuation.

• The portfolio is leasehold, with ongoing service-charge and ground-rent liabilities.

• The stated income is an auctioneer/vendor figure rather than independently verified rental evidence.

Recommendation

Consider as an income-led acquisition only if the rent roll, tenancy agreements, service-charge accounts, lease terms and all special-condition fees are verified. Do not bid on the basis of a resale GDV that cannot currently be evidenced.

Strategy Rating

Analysis Confidence

The stated rent, unit mix, lease term, guide price and several same-development sales are available, but comparable unit details, external rental evidence, tenancy terms, verified service charges, seller fees and a reliable portfolio GDV are absent.