54 Tulip Walk, Chelmsley Wood, Birmingham, B37 7NX

Description

A vacant freehold end terraced property. An end terraced property standing back from the road behind a foregarden. The property benefits from having gas central heating however is in need of modernisation throughout.

Accommodation

Ground Floor: Hall With Understairs Store, Reception Room, Dining Kitchen. First Floor: Landing With Store, Two Bedrooms, Shower Room, Separate WC. Outside: Gardens and Communal Parking.

Location

Standing back from the road behind a foregarden.

Tenure / Property Information

Investment Analysis

The supplied sold evidence ranges from £108,500 to £146,000, with the latest comparable at £146,000 for 48 Tulip Walk in February 2024. However, the condition of those comparables is not provided, while this property requires modernisation throughout. A reliable adjusted GDV cannot therefore be established from the evidence alone.

Investment Snapshot

Strategy Recommendation

Do not bid on the current evidence alone. Obtain the legal pack, inspect the property, confirm the modernisation scope and obtain contractor costs before considering a BTL or resale strategy.

Works Required

Modernisation throughout as described by the auctioneer. The precise scope, specification and cost cannot be established without the legal pack, inspection and contractor quotations. Gas central heating is present.

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 because the refurbishment cost and adjusted post-works GDV are unknown. The £2,700 administration charge is known, but additional legal-pack costs may apply. Refinancing at 75% of GDV cannot be calculated without a supportable GDV.

Buy-to-Let Analysis

The supplied evidence is one advertised asking rent of £400 pcm, equating to £4,800 annually. Against the £50,000 guide price this produces a headline gross yield of 9.6%, before the £2,700 administration charge, refurbishment, finance, tax, maintenance, voids and management. A yield on the total project cost cannot be calculated because refurbishment costs are not supplied. The rent is advertised rather than achieved.

Flip Analysis

The sold comparables indicate local values between £108,500 and £146,000, but their condition and specification are unknown. A flip surplus cannot be calculated because the subject's refurbishment cost, adjusted GDV and selling costs are unsupported.

Investor Risks & Due Diligence

• Modernisation is required throughout, but the scope and cost are unknown.

• The £400 pcm figure is an advertised asking rent rather than achieved rent or passing rent.

• Comparable sales do not include condition or specification details, preventing a reliable adjustment for this property's condition.

• Additional completion costs may be listed in the Special Conditions and are not supplied.

• Communal parking and the property's exact legal and physical condition require verification.

Recommendation

Do not bid on the current evidence alone. Obtain the legal pack, inspect the property, confirm the modernisation scope and obtain contractor costs before considering a BTL or resale strategy.

Strategy Rating

Analysis Confidence

There is useful same-street sales evidence, a guide price, an administration charge and one advertised rent, but no quantified works budget, EPC details, legal-pack costs, comparable condition information or reliable adjusted GDV.