7 Windsor Road, Bournemouth, Dorset, BH5 1DT

Description

A mid terrace building arranged to provide a lower ground floor one bedroom flat and a six bedroom HMO on the upper floors, part let producing £24,948 per annum. When fully let the ERV is £58,212 per annum.

Accommodation

Lower Ground Floor: reception room, kitchen, bedroom, bathroom. Ground Floor: kitchen, two bedrooms. First Floor: kitchen, bedroom, bedroom/kitchenette, bathroom. Second Floor: bedroom/kitchenette, bedroom/kitchenette. Exterior: private garden to the lower ground floor flat.

Location

Situated on a residential road close to local shops and amenities. Bournemouth Beach is within easy reach. Transport links are provided by Bournemouth rail station.

Tenure / Property Information

Investment Analysis

Indicative base GDV of £450,000, anchored to the £450,000 sale at 41 Windsor Road in March 2022. Evidence also shows £381,600 at 1 Windsor Road in September 2021 and £510,000 for the subject property in October 2018. These sales vary by date and property characteristics, so the range is evidence-based rather than a formal valuation.

Investment Snapshot

Strategy Recommendation

Prioritise an income-led BTL or BRRR strategy, subject to legal-pack review, HMO compliance confirmation and verification that the stated ERV is achievable. Do not rely on the apparent refinance surplus without lender and valuation confirmation.

Works Required

No physical defects or refurbishment requirements are supplied. The practical scope is to verify the condition, HMO and flat compliance, review tenancy documentation, and re-let the currently vacant rooms if appropriate. No refurbishment allowance has been assumed.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the indicative £450,000 GDV, a 75% refinance is £337,500. Against the guide plus the £1,800 admin charge, this indicates £185,700 more gross refinance proceeds than the analysed acquisition cost before finance, tax, legal, valuation and refinancing costs. No works allowance has been assumed because no defects are evidenced. Actual refinance depends on valuation, lender criteria, HMO status, rent evidence and tenancy documentation.

Buy-to-Let Analysis

At the guide price, the existing part-let income of £24,948 per annum equates to a gross yield of 16.63% before costs. Using the auctioneer's fully-let ERV of £58,212 per annum gives 38.81% on the guide or 38.35% including the stated £1,800 admin charge. The ERV is an estimate and not achieved rent; two rooms and the lower-ground-floor flat are currently let, while the remaining rooms appear to require letting.

Flip Analysis

The evidence supports an indicative GDV range of £381,600 to £510,000, with a £450,000 base case. Against the £151,800 guide-plus-admin cost, the gross margin before selling costs, finance, tax and works would be £298,200 in the base case. A formal flip surplus is not stated because no selling-cost allowance or refurbishment budget is supported.

Investor Risks & Due Diligence

• The property is only part let and current income of £24,948 per annum is materially below the auctioneer's £58,212 fully-let ERV.

• The £58,212 ERV is an estimate rather than achieved rent, and the supplied rental listings are from unrelated locations and do not substantiate local room rents.

• HMO licensing, planning, fire-safety and other compliance status are not evidenced and should be checked in the legal pack and with the relevant authorities.

• The £1,800 admin charge is included, but any additional legal-pack disbursements are unknown.

• The comparable sales are from different dates and may not be directly comparable to this seven-bedroom HMO and lower-ground-floor flat.

• No condition survey, refurbishment budget, finance costs, tax, insurance, management or void allowance is supplied.

Recommendation

Prioritise an income-led BTL or BRRR strategy, subject to legal-pack review, HMO compliance confirmation and verification that the stated ERV is achievable. Do not rely on the apparent refinance surplus without lender and valuation confirmation.

Strategy Rating

Analysis Confidence

The property layout, tenure, current income, estimated full income, guide price and several same-road completed sales are supplied. However, condition, licensing, operating costs, legal-pack disbursements, achieved rents and finance terms are not provided.