8 Harrison Warehouse, Eastgate, Louth LN11 8DD

Description

A wonderful opportunity to acquire this second floor apartment, offered for sale with the benefit of an ongoing tenancy at £550 pcm (£6600 per annum). The property will appeal to investors, being a ‘ready to go’ buy to let investment with a strong yield, in this popular area.

Accommodation

Second Floor: Lounge, Kitchen, Bathroom, Bedroom

Location

The property is situate in Harrison Mill, on Eastgate, Louth, a converted historic mill building, within close proximity of the town centre. Louth itself, being a traditional Lincolnshire market town, offers a wide range of facilities and amenities, including a range of eateries, shopping facilities and public houses, along with being well located for access to the surrounding towns and villages, along with the Lincolnshire Wolds.

Tenure / Property Information

Investment Analysis

Same-building and nearby leasehold flat sales range from £55,000 to £80,000. The most recent supplied comparable sold for £80,000 in June 2021. A base GDV of £80,000 is used, with £68,500 as a conservative low case. Current value remains uncertain because the comparables are historic.

Investment Snapshot

Strategy Recommendation

Buy-and-hold BTL, subject to satisfactory legal-pack, tenancy, lease and service-charge checks. The existing tenancy provides immediate rental income.

Works Required

No refurbishment works are evidenced; the property is described as a ready-to-go investment. Verify condition, tenancy, lease terms and legal-pack requirements.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the £80,000 base GDV, 75% refinancing indicates £60,000 of borrowing. Against estimated acquisition and known charges of £43,600, this could theoretically repay the acquisition and leave approximately £16,400 before finance, tax and unknown costs. Actual refinanceability depends on valuation, lender criteria, lease and tenancy documentation.

Buy-to-Let Analysis

At the £40,000 midpoint of the guide, the existing £550 pcm rent produces £6,600 annually and a gross yield of 16.5% before costs. Including the known £3,600 buyer and admin charges, the gross yield is approximately 15.14%. Service charge, ground rent and other disbursements are not supplied.

Flip Analysis

A flip is less compelling because the property is tenanted and no refurbishment uplift is evidenced. At the £40,000 guide midpoint plus known charges, the gross spread to the £80,000 base GDV is £36,400 before selling, finance, tax and any undisclosed costs.

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

• Existing tenancy agreement terms, deposit position and compliance documents are not supplied.

• Service charge and ground rent information is absent.

• The lease is leasehold and its remaining term and any lease restrictions should be verified.

• Special conditions may impose additional search, legal, transfer or seller-cost charges.

• Historic comparable sales may not represent current market value.

Recommendation

Buy-and-hold BTL, subject to satisfactory legal-pack, tenancy, lease and service-charge checks. The existing tenancy provides immediate rental income.

Strategy Rating

Analysis Confidence

Rent, tenancy status, guide range, known charges and multiple completed sales are supplied, but current valuation, leasehold charges, tenancy terms and legal-pack costs are incomplete.