5 Burns Avenue, Hartlepool, Cleveland

Description

Investment freehold semi-detached house by order of receivers. Non-traditional construction (Orlit PRC unrepaired). Front and rear gardens with store. Hartlepool town centre and its Marina are approximately 2 miles to the north-east; Summerhill Country Park is within a short walk and Seaton Carew Beach is accessible to the south-east.

Accommodation

Three bedroom accommodation; front and rear gardens with store.

Location

Situated on the west side of Burns Avenue, to the north of its junction with Masefield Road. Hartlepool town centre and its Marina are approximately 2 miles to the north-east. Hartlepool station provides regular services to Middlesbrough, Sunderland and Newcastle, together with further services to London Kings Cross. The A689 (Stockton Road) provides access to the A19 and A1(M) motorway. Summerhill Country Park is within a short walk and Seaton Carew Beach is accessible to the south-east.

Tenure / Property Information

Investment Analysis

The only supplied comparable is 11 Burns Avenue at £75,000, completed in February 2006. It is too old to support a current GDV or reliable market value, particularly given this property’s unrepaired Orlit PRC construction. The £50,000+ guide is an auction guide, not a valuation.

Investment Snapshot

Strategy Recommendation

Proceed only after specialist Orlit PRC assessment, confirmation of tenancy terms, lender acceptability and full cost verification. Do not rely on the 2006 comparable or the headline 12% guide yield for a firm bid.

Works Required

Obtain specialist assessment of the unrepaired Orlit PRC construction and complete any required specialist remediation or repair. No further works or costs are evidenced.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be completed reliably. Current GDV, specialist PRC remediation costs, total acquisition costs and refinance evidence are unavailable. The unrepaired non-traditional construction may also affect lender and refinanceability assessment.

Buy-to-Let Analysis

The supplied advertised asking rent is £500 pcm, equivalent to £6,000 annually. Against the £50,000 guide, this indicates a gross yield of 12%, before works, finance, tax, maintenance, voids and other costs. The property is subject to an Assured Periodic Tenancy, but no passing rent, tenancy terms or tenant information is supplied. The yield cannot be assessed on total cost because refurbishment and additional charges are unknown.

Flip Analysis

A flip surplus cannot be calculated. The only comparable is a 2006 completed sale at £75,000 and cannot support a current GDV; refurbishment costs, selling costs and additional charges are also unavailable.

Investor Risks & Due Diligence

• Unrepaired Orlit PRC non-traditional construction may require specialist assessment and remediation.

• The property is subject to an Assured Periodic Tenancy, but passing rent, tenancy terms and tenant information are not supplied.

• The £500 pcm figure is an advertised asking rent rather than achieved or confirmed passing rent.

• The sole comparable completed in 2006 is too historic to establish current value.

• Additional seller or third-party charges may apply, with no amounts supplied.

• No refurbishment, finance, selling or total acquisition cost evidence is supplied.

Recommendation

Proceed only after specialist Orlit PRC assessment, confirmation of tenancy terms, lender acceptability and full cost verification. Do not rely on the 2006 comparable or the headline 12% guide yield for a firm bid.

Strategy Rating

Analysis Confidence

The property type, tenure, tenancy status, guide, one advertised rent and one historic completed sale are supplied, but current market evidence, PRC remediation costs, tenancy details, buyer fees and other project costs are missing.