53 Desborough Road, Eastleigh, Hampshire, SO50 5NY

Description

A Five Bedroom Fully Licensed HMO Let Producing £31,080 Per Annum (Reflecting a Gross Initial Yield of 12.4%). Potential for a Rear Extension (Subject to Obtaining all Relevant Consents). The property comprises a five bedroom mid terrace house arranged over ground and first floors.

Accommodation

Ground Floor: Reception Room, Kitchen, Two Bedrooms, Bathroom. First Floor: Three Bedrooms, Bathroom.

Location

The property is situated on a residential road close to local shops and amenities. The open spaces of Lakeside Country Park are within easy reach. Transport links are provided by Eastleigh rail station.

Tenure / Property Information

Investment Analysis

Same-road HM Land Registry sales range from £302,500 (November 2024) to £317,000 (June 2026), with older sales at £330,000 and £332,000. These comparables do not confirm bedroom count, HMO configuration or condition. A base GDV of £317,000 is used, with £302,500–£330,000 as an evidence-supported range. The £250,000 guide is materially below the recent same-road sales, but the reason for the discount is not evidenced.

Investment Snapshot

Strategy Recommendation

Prioritise income-led BTL ownership, subject to verification of the periodic tenancy, HMO licence, legal pack and operating costs. Do not underwrite extension or refurbishment value without consents, inspection evidence and a complete cost schedule.

Works Required

No refurbishment defects or works are evidenced. Allow for routine maintenance only if confirmed by inspection. The stated rear-extension potential would require all relevant consents and is excluded from the valuation and calculations.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the guide, the stated rent provides strong gross income and the base GDV implies a 75% refinance figure of £237,750. Total project cost, cash required and post-refinance cash left cannot be calculated because refurbishment costs and other completion costs beyond the £1,800 administration charge are unsupported. Refinance terms and valuation acceptance are also not evidenced.

Buy-to-Let Analysis

The property is stated to be let on a periodic tenancy at £2,590 pcm, producing £31,080 annually. Against the £250,000 guide, the gross yield is approximately 12.43%, consistent with the auctioneer's stated 12.4%. Net yield cannot be established because operating costs, finance costs, tax and any HMO expenditure are not supplied. No external rental comparables were identified.

Flip Analysis

The base GDV is estimated at £317,000 from same-road completed sales. A flip surplus cannot be calculated reliably because works costs and selling costs are not supplied. The property is already let, so vacant possession, tenancy treatment and any effect on resale would require verification.

Investor Risks & Due Diligence

• The tenancy is periodic, so rent continuity and possession position require verification.

• HMO licensing and tenancy documentation should be confirmed in the legal pack despite the property being described as fully licensed.

• Buyer disbursements may be payable in addition to the stated £1,800 administration charge.

• The potential rear extension is subject to obtaining all relevant consents and is excluded from the valuation.

• Comparable sales do not confirm bedroom count, HMO use, condition or specification.

• Net investment returns cannot be established without operating and compliance costs.

Recommendation

Prioritise income-led BTL ownership, subject to verification of the periodic tenancy, HMO licence, legal pack and operating costs. Do not underwrite extension or refurbishment value without consents, inspection evidence and a complete cost schedule.

Strategy Rating

Analysis Confidence

The analysis has a stated passing rent, guide price, tenure and several same-road completed sales, but lacks condition data, HMO operating costs, external rental comparables, buyer disbursements and evidence on comparable property specifications.