81 Green Road, Colne, Lancashire BB8 8AL

Description

Not yet inspected by Auction House, however understood to be a tenanted three bed mid terrace house. The accommodation is understood to comprise of two reception rooms, kitchen, three bedrooms and a bathroom. The property is 82m² (as taken from EPC). Externally, there is a yard to the front and rear of the property. We have been informed that the property is currently let at £498pcm / £5,976pa – please see legal pack for agreement.

Accommodation

Two reception rooms, kitchen, three bedrooms and a bathroom; 82m² as taken from EPC.

Location

Colne, Lancashire. Yard to the front and rear of the property.

Tenure / Property Information

Investment Analysis

The most relevant evidence is the completed sale of 83 Green Road at £56,000 in July 2025. The subject property itself sold for £53,500 in 2014 and £65,000 in 2008, but those older sales have limited current relevance. A base GDV of £56,000 is therefore used, with substantial uncertainty due to the limited comparable evidence and lack of inspection.

Investment Snapshot

Strategy Recommendation

Potential income investment only if the tenancy, condition, legal pack and market rent are verified and the acquisition price is materially below the guide. Do not rely on the advertised rental listings or historic £65,000 sale for underwriting.

Works Required

No specific works are supported by the evidence. The property has not yet been inspected by the auctioneer, so refurbishment costs cannot be estimated. Confirm condition, tenant obligations and any required works through inspection and the legal pack.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using a £56,000 base GDV, 75% refinancing would provide approximately £42,000. Including the guide price and minimum admin charge gives a base cost of £61,600 before works and other fees, leaving indicative cash of £19,600 in the project. The refinance does not recover the base cost, so the BRRR case is weak unless the purchase price, verified rent or valuation is materially better than the evidence supports.

Buy-to-Let Analysis

At the existing rent of £498 pcm, annual rent is £5,976 and the gross yield is approximately 10.3% on the £58,000 guide price, or 9.7% including the £3,600 minimum admin charge. Rental listings indicate advertised asking rents of £760–£850 pcm, but these are not achieved rents and cannot be assumed without tenancy and market verification. Repairs, voids, management, finance, tax and other auction costs are excluded.

Flip Analysis

A £56,000 base GDV is below the £61,600 guide-price-plus-minimum-admin cost before works, selling costs and other disbursements. A reliable flip surplus cannot be established and would be negative before selling costs on this base case. The £65,000 high scenario is based on a 2008 sale and is not sufficiently reliable for underwriting.

Investor Risks & Due Diligence

• The property has not been inspected by the auctioneer, so condition and required works are unknown.

• The tenancy agreement and related obligations require review in the legal pack.

• Current rent of £498 pcm is materially below the supplied advertised asking-rent evidence of £760–£850 pcm; the higher rents are not guaranteed.

• Disbursements, search fees, seller cost reimbursements, legal fees and transfer fees may be payable in addition to the minimum admin charge.

• The base GDV relies primarily on one recent comparable sale, while the higher £65,000 evidence is from 2008.

• The guide-price-plus-known-admin cost exceeds the base GDV before works, selling costs, finance and tax.

Recommendation

Potential income investment only if the tenancy, condition, legal pack and market rent are verified and the acquisition price is materially below the guide. Do not rely on the advertised rental listings or historic £65,000 sale for underwriting.

Strategy Rating

Analysis Confidence

There is one recent nearby completed sale and confirmed current rent, but the property has not been inspected, the tenancy terms are unavailable, rental listings are asking rents only, and additional auction costs and condition-related expenditure are unknown.