56 St. Michaels, Houghton le Spring, Tyne And Wear, DH4 5NS

Description

A traditional three bedroom mid terrace house offering spacious accommodation with plenty of potential for cosmetic updating. This property would make an ideal family home or investment opportunity.

Accommodation

Large rear porch with storage, entrance hall with further storage, downstairs WC, lounge with feature fireplace, kitchen fitted with a range of units and work surfaces, three first-floor bedrooms with fitted storage, and a bathroom.

Location

Situated on the edge of the town centre, conveniently located for a wide range of local shops, schools, health and leisure facilities.

Tenure / Property Information

Investment Analysis

Same-street completed sales range from £75,000 to £127,550, with the more directly comparable 2024 sales at £75,000 and £76,000 and another sale at £80,000 in 2022. The £117,500 2026 sale and £127,550 2023 sale indicate potential upside but may reflect differences not evidenced here. A base GDV of £80,000 is used, with a low scenario of £75,000 and high scenario of £117,500. The guide is £57,000, but condition, tenure, legal-pack costs and other acquisition costs remain uncertain.

Investment Snapshot

Strategy Recommendation

Proceed only subject to satisfactory legal-pack review and a condition inspection. The guide-to-comparable spread may suit a value-led purchase, but the unknown works, tenure and additional fees prevent a firm bid or flip-margin recommendation.

Works Required

Cosmetic updating as supported by the description, including general redecoration and updating finishes where required. No specific defects or refurbishment costs are evidenced, so no cost allowance is provided.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £57,000 guide and an indicative base GDV of £80,000, 75% refinancing would be approximately £60,000. A reliable cash-left-in or equity calculation cannot be completed because refurbishment costs and the full acquisition cost, including potentially applicable legal-pack charges, are unknown.

Buy-to-Let Analysis

Using advertised asking rents of £850–£1,085 pcm, the gross yield on the £57,000 guide is approximately 17.89%–22.84% before works, finance, maintenance, voids, management and other costs. These are asking rents rather than achieved rents, and no property-specific achieved rent is supplied.

Flip Analysis

The base GDV of £80,000 is supported primarily by the £75,000, £76,000 and £80,000 same-street sales. A flip surplus cannot be calculated because refurbishment costs, acquisition charges beyond the stated £3,600 administration charge, selling costs and any special-condition charges are not fully evidenced.

Investor Risks & Due Diligence

• Tenure and legal title are stated to be subject to the legal pack.

• The non-refundable £3,600 administration charge reduces the margin.

• Special Conditions of Sale may add search, seller, legal, transfer and other charges.

• Refurbishment is described only as potential cosmetic updating, with no condition survey or cost evidence.

• Rental figures are advertised asking rents and may not represent achieved rent.

• The comparable sales vary materially from £75,000 to £127,550, creating valuation uncertainty.

• Parking, heating and council tax information are not supplied.

Recommendation

Proceed only subject to satisfactory legal-pack review and a condition inspection. The guide-to-comparable spread may suit a value-led purchase, but the unknown works, tenure and additional fees prevent a firm bid or flip-margin recommendation.

Strategy Rating

Analysis Confidence

There are several same-street completed sales and rental asking evidence, but property-specific condition costs, tenure, occupancy, achieved rent, full fees and selling costs are not supplied.