43 Stainton Drive, Gateshead, Tyne And Wear

Description

A wonderful opportunity to acquire this well proportioned ground floor flat, offered for sale in fair order throughout, as an ideal investment opportunity, with similar size properties available to let, at the time of preparing these details, at £525pcm (£6300 per annum), this presents a solid yield opportunity based on the advertised guide price in an area of strong rental demand.

Accommodation

Entrance Hallway; Kitchen; Lounge; Bedroom 1; Bathroom

Location

The property is well situated on Stainton Drive, Gateshead, ideally located for access to a wide range of facilities and amenities, along with excellent transport links to both Gateshead centre and the City of Newcastle upon Tyne.

Tenure / Property Information

Investment Analysis

The strongest evidence is the same-street leasehold flat at 36 Stainton Drive, sold for £35,000 in November 2023 and January 2023. Other same-street evidence ranges from £33,000 to £43,500 but is older. A base GDV of £35,000 is therefore used, with £33,000 as a low case and £43,500 as a high case. The subject is stated to be in fair order, but the comparable properties are not described in sufficient detail for a precise adjustment.

Investment Snapshot

Strategy Recommendation

Consider as a buy-to-let only if acquired near or below the midpoint guide and the legal pack confirms acceptable ground rent, service charge and lease terms. Avoid relying on a flip or BRRR strategy without stronger valuation and cost evidence.

Works Required

No specific repair or refurbishment works are evidenced. Allow for inspection, cleaning and any normal letting preparation only if confirmed during viewing. Review the lease, ground rent, service charge and legal-pack requirements before bidding.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £29,000 midpoint purchase assumption, known purchase cost including the £3,600 admin charge is £32,600, excluding any works and other disbursements. A 75% refinance against the £35,000 base GDV is estimated at £26,250, leaving approximately £6,350 of capital in before finance and tax. The refinance outcome is highly sensitive to valuation, lending terms and undisclosed lease costs.

Buy-to-Let Analysis

Using the auctioneer's £525 pcm estimate, annual gross rent is £6,300. Based on the midpoint of the £19,000–£39,000 guide (£29,000), the gross yield is approximately 21.72%, reducing to 19.33% after adding the known £3,600 admin charge. This is before service charge, ground rent, maintenance, voids, management, finance and tax. The rent is an advertised estimate rather than achieved rent, and lease costs are unknown.

Flip Analysis

Using the £35,000 base GDV and £32,600 known base cost, the apparent surplus is only £2,400 before selling costs, finance, tax and any refurbishment. The high-GDV case is supported only by older evidence, so a flip has limited demonstrated margin.

Maximum Bid Indicator

This is an HB screening estimate based on the supplied evidence and HB assumptions. It is not a formal valuation or instruction to bid.

Investor Risks & Due Diligence

• The £525 pcm figure is an auctioneer estimate based on advertised availability, not achieved rent.

• Ground rent, service charge and detailed lease terms are not supplied and require legal-pack review.

• Additional disbursements, search fees, legal fees, transfer fees or other buyer costs may apply.

• The base GDV relies primarily on two £35,000 same-street sales; the higher £43,500 evidence is from 2014.

• No detailed condition survey or refurbishment cost evidence is provided.

• The property has EPC rating D, which may affect letting or future improvement requirements.

Recommendation

Consider as a buy-to-let only if acquired near or below the midpoint guide and the legal pack confirms acceptable ground rent, service charge and lease terms. Avoid relying on a flip or BRRR strategy without stronger valuation and cost evidence.

Strategy Rating

Analysis Confidence

There is recent same-street sold evidence and an auctioneer rent estimate, but only limited comparable detail is available. Achieved rent, service charge, ground rent, disbursements, condition costs and other acquisition costs are not supplied.