8 Collingwood Court, Washington, Tyne And Wear, NE37 3EB

Description

Auction House would like to present this one bedroom apartment located in Washington and offered to the market via online auction. Comprising of an entrance hallway leading to a lounge, kitchen, bedroom, bathroom and a balcony. The property is being sold with a tenant in situ and is currently achieving £3000 per annum making it the ideal hands off investment opportunity. Close to a range of local amenities and transport links.

Accommodation

Entrance hallway leading to a lounge, kitchen, bedroom, bathroom and a balcony.

Location

Close to a range of local amenities and transport links.

Tenure / Property Information

Investment Analysis

Completed sales in the same development range from £18,000 to £35,000, with a median of £25,000. The base GDV is therefore estimated at £25,000, with the observed comparable range used as the low and high scenarios. No evidence supports a condition, floor, size or lease-length adjustment.

Investment Snapshot

Strategy Recommendation

Potential hands-off BTL acquisition only if the £3,000 annual rent is verified and the legal pack confirms acceptable service charges, lease terms and no arrears. Do not rely on the provisional bid ceiling until all buyer and property costs are known.

Works Required

No refurbishment works are evidenced. The property is described as occupied by a tenant and achieving £3,000 per annum. Confirm condition, service charges, arrears, lease terms and repairing obligations in the legal pack.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using a £25,000 base GDV, 75% refinancing equates to £18,750. Against a £15,000 purchase plus the known £3,600 administration charge, the indicative surplus is £150 before unknown buyer fees, finance, tax and other costs. Refinance viability depends on lender acceptance of the lease, tenancy, valuation and full legal-pack information.

Buy-to-Let Analysis

At the upper £15,000 guide, the stated £3,000 annual rent produces a 20.00% gross yield before costs. Including the known £3,600 administration charge, the gross yield is approximately 16.13%. This excludes any buyer premium, service charges, management, maintenance, tax and other auction costs, so net yield cannot be established.

Flip Analysis

The base GDV of £25,000 less the £15,000 purchase and known £3,600 administration charge leaves £6,400 before selling costs, finance, tax, buyer premium, other auction fees and any works. A reliable flip surplus cannot be established because selling costs and condition evidence are unavailable.

Maximum Bid Indicator

This is an HB screening estimate based on the supplied evidence and HB assumptions. It is not a formal valuation or instruction to bid.

Investor Risks & Due Diligence

• The stated rent is only £3,000 per annum and should be verified against the tenancy and bank receipts.

• Buyer premium and other auction, legal, transfer and disbursement costs are not quantified.

• Lease length, ground rent, service charges and major works liabilities are not supplied.

• The property is leasehold and tenant occupied, creating legal, management and possession-related due-diligence requirements.

• The £25,000 base GDV is an estimate based on nearby completed sales and may not reflect this apartment's condition or specific attributes.

Recommendation

Potential hands-off BTL acquisition only if the £3,000 annual rent is verified and the legal pack confirms acceptable service charges, lease terms and no arrears. Do not rely on the provisional bid ceiling until all buyer and property costs are known.

Strategy Rating

Analysis Confidence

The analysis has five same-development completed sales and stated passing rent, but lacks lease length, service charges, tenancy details, condition evidence, buyer premium and other completion costs.