68A Dagenham Road, Romford

Description

An opportunity to acquire a first floor two-bedroom flat as a residential investment. The flat is currently let at £15,000 per annum.

Accommodation

Ground floor: entrance to the side of the building with stairs to the first floor. First floor: living room, kitchen, two bedrooms and shower room with W.C.

Location

The location provides convenient access to local amenities and transport links.

Tenure / Property Information

Investment Analysis

The £190,000 completed sale of the same flat on 4 June 2024 is the strongest available value evidence. Against the £180,000+ guide, this indicates a £10,000 difference before any administration, other non-optional fees, SDLT, legal costs or finance costs. A wider GDV range cannot be supported from one comparable. The existing £15,000 annual passing rent equates to £1,250 pcm; the £1,800 pcm figure is only an advertised asking rent in RM7 and is not evidence of achieved rent for this flat.

Investment Snapshot

Strategy Recommendation

Prioritise as a hold-to-let only if tenancy, rent evidence, lease and all auction fees are satisfactory. Do not underwrite a flip or refurbishment uplift without inspection and further comparable evidence.

Works Required

No refurbishment works or defects are evidenced. Obtain inspection, tenancy and legal information before bidding; the EPC is rated D. Any works allowance remains unsupported.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the £190,000 same-property sale as base GDV, 75% refinance is approximately £142,500. Against the £180,000 guide, indicative cash left in is £37,500 before refurbishment, administration and other non-optional fees, SDLT, legal costs and finance costs. No refurbishment budget or wider valuation range is supported, so BRRR viability cannot be confirmed.

Buy-to-Let Analysis

At the stated passing rent of £15,000 per annum, gross yield on the £180,000 guide is approximately 8.33%. Using the £1,800 pcm advertised RM7 asking rent would imply 12.00%, but this is not an achieved rent for the flat. Net yield cannot be established because operating costs, management, voids, finance, insurance and fees are not supplied. The property is already let under an Assured Periodic Tenancy.

Flip Analysis

The base sale evidence is £190,000 against a £180,000 guide, leaving £10,000 before selling costs, acquisition costs, finance and any works. Because no selling allowance, refurbishment allowance or complete fee schedule is supplied, a reliable flip surplus cannot be calculated.

Investor Risks & Due Diligence

• Administration and other non-optional auction fees are unspecified and may be payable in addition to the bid.

• Stamp Duty, Land Registry fees, VAT and other acquisition costs may apply but are not quantified.

• The £1,800 pcm rental evidence is an advertised asking rent, not an achieved rent for this flat.

• No condition report or refurbishment budget is supplied.

• The tenancy is an Assured Periodic Tenancy; tenancy terms, arrears, deposit and compliance information are not supplied.

• Net yield cannot be calculated because operating and ownership costs are not supplied.

• The 168-year lease is stated to run from 2 June 2024, but lease terms, service charge and ground rent are not supplied.

• Only one completed comparable is available, limiting valuation confidence.

Recommendation

Prioritise as a hold-to-let only if tenancy, rent evidence, lease and all auction fees are satisfactory. Do not underwrite a flip or refurbishment uplift without inspection and further comparable evidence.

Strategy Rating

Analysis Confidence

The analysis has a same-property completed sale and stated passing rent, but only one comparable is available and refurbishment costs, buyer fees, operating costs, tenancy details and achieved market rent are incomplete.