5 Cole Hill, Worcester, WR5 1DG

Description

A vacant freehold double fronted mid terraced property

Location

5 Cole Hill, Worcester, WR5 1DG Full listing coordinates are used for mapping: 52.188293, -2.213308.

Investment Analysis

Investment Snapshot

Works Required

• Kitchen replacement / fit-out

• Bathroom/WC refurbishment

• Electrical and heating/plumbing testing and remedials

• Plastering, decoration and flooring

• Roof/damp/windows/external repairs subject to survey

HB working works allowance: £32,000–£56,000. This is based on the auction description, accommodation and visible condition indicators; replace it with surveyor/contractor evidence before bidding.

Rental & Market Context

HB working market rent is £2,200–£3,100 pcm (£26,400–£37,200 p.a.), based on the bedroom count, property type and postcode market band. This is an HB estimate rather than an auctioneer figure.

Sold within 5m radius

Reliable recent like-for-like sold comparables were not established from the supplied scrape for this individual property. No comparable addresses or prices have been invented. Before bidding, verify the HB end-value range against HM Land Registry / current local sold evidence, matching property type, size, tenure, condition and micro-location.

GDV Assessment

HB indicative end value is £250,000–£440,000. For residential/income assets this is derived from the working market-rent range and a local gross-yield band of approximately 8.5%–10.5%, then checked against the current guide. Confidence is medium because a property-level sold-comparable set has not yet been verified.

Strategy Recommendation

Preferred strategy: HMO / Income. The working purchase range is £245,000–£265,000 and the works allowance is £32,000–£56,000. The key question is whether the legal pack, condition and local market evidence support the income/end-value assumptions without exhausting contingency.

Potential BRRR Position

Using a mid-point purchase of £255,000 and mid-point works of £44,000, purchase + works is about £299,000 before SDLT, auction fees and finance. A 75% refinance on the HB £250,000–£440,000 end-value range is approximately £187,500–£330,000. At the mid-point, around £40,250 of purchase-and-works capital remains in the deal before acquisition/finance costs. HB BRRR rating: Weak.

Flip Analysis

Illustrative scenario: purchase £255,000, works £44,000, plus approximately £27,300 for acquisition, finance/holding and selling costs. Total working cost is about £326,300 against a mid-point end value of £345,000, giving an indicative pre-tax margin of £18,700 (5.4% of GDV). On these assumptions the flip is marginal/weak and is sensitive to bid competition, refurbishment overspend and resale evidence.

HMO Analysis

Verify HMO licence/planning, room sizes, fire doors, alarm/emergency lighting, kitchen/bathroom ratios, management standards and local room rents. Gross income should be stress-tested for utilities, voids and management costs.

Investor Risks & Due Diligence

• Read the complete Bond Wolfe legal pack and special conditions, including buyer/admin fees

• Verify title, tenure, lease length, tenancy agreements and vacant-possession status

• Replace HB works assumptions with surveyor/contractor pricing

• Confirm mortgage/bridging and insurance availability for the exact asset type

• Re-check local rents and property-level sold comparables immediately before bidding

Maximum Bid Analysis

Guide £245,000+. HB considers the deal strongest around £245,000–£245,000. Above approximately £245,000, the conservative end-value/refinance margin begins to weaken materially. This is an investment sensitivity indicator, not a valuation or instruction to bid.

Recommendation

Overall HB view: HMO / Income. Risk level: High; analysis confidence: Medium. The principal sensitivities are end value, rent and refurbishment cost. Proceed only if legal and physical due diligence supports the assumptions and leaves adequate contingency.

Strategy Rating

HMO Income: ★★★★☆ | BRRR: ★★★☆☆ | Flip: ★★★☆☆

Research Sources

https://www.bondwolfe.com/auctions/properties/360587-property-auction-worcester/ | https://www.bondwolfe.com/auction/3451/ | https://www.bondwolfe.com/addendum/