81 Stockton Road, Hartlepool, Cleveland

Description

A substantial freehold mid-terrace property arranged over ground, first and second floors as a six-bedroom licensed HMO, all with en-suite bedrooms. Two communal kitchens and a separate tenant lounge area. Rear yard. Gross Internal Area approximately 157 sq m (1,693 sq ft).

Accommodation

Room 1: Ground floor bedroom with en-suite; vacant. Room 2: Ground floor bedroom with en-suite; vacant. Room 3: First floor bedroom with en-suite; £105 per week. Room 4: First floor bedroom with en-suite; vacant. Room 5: Second floor bedroom with en-suite; £105 per week. Room 6: Second floor bedroom with en-suite; £105 per week. Two communal kitchens and a separate tenant lounge area. Outside: rear yard.

Location

Situated on Stockton Road within a predominantly residential area, between its junctions with Southburn Terrace and York Road. Hartlepool mainline rail station and local bus services are nearby. Road links include the A689 and A19. Local amenities include Hartlepool town centre and Middleton Grange Shopping Centre. Recreational facilities include Burn Valley Gardens and Ward Jackson Park.

Tenure / Property Information

Investment Analysis

The property is a six-bedroom, licensed HMO with three occupied rooms and three vacant rooms. Supplied Stockton Road sales range from £38,000 to £120,000, but they are described only as terraced freehold sales and are not confirmed as six-bedroom HMOs or directly comparable in condition and accommodation. Accordingly, a reliable GDV cannot be established from the evidence. The £125,000 guide is below the highest supplied sale but above the other four sales; this comparison is indicative only.

Investment Snapshot

Strategy Recommendation

Consider a BTL/HMO hold only after verifying the licence, tenancy documents, actual receipts, operating costs, condition and all special-condition fees. The advertised fully-let income is attractive against the guide, but the three vacancies and limited comparable evidence justify conservative bidding.

Works Required

No specific defects or refurbishment requirements are evidenced. Obtain a full inspection and verify the condition of the six en-suites, two communal kitchens, tenant lounge, heating and external areas before bidding. Any works allowance is therefore unsupported.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR appraisal cannot be quantified because no supported GDV, refurbishment budget or refinance valuation is available. The known £1,800 inclusive-of-VAT contract documentation fee should be included in acquisition cost, while any seller fees remain unquantified. Refinance capacity and cash left in are therefore unsupported.

Buy-to-Let Analysis

The auctioneer estimates fully let gross income of £32,760–£35,880 per annum, equivalent to £2,730–£2,990 per month. Against the £125,000 guide, the gross yield range is approximately 26.21%–28.70%, with a midpoint calculation of 27.46%. This is based on an estimate rather than verified passing rents; current known income is only three rooms at £105 per week, equivalent to £16,380 per annum, and three rooms are vacant. Operating costs, utilities, management, maintenance, voids and finance costs are not supplied, so net yield and cash flow cannot be established.

Flip Analysis

A flip appraisal cannot be established. The supplied comparable sales are not sufficiently specific to support a resale GDV, no works budget is evidenced, and no selling allowance is supplied. The property is presented as an income-producing licensed HMO, making a hold strategy more directly supported than a resale strategy.

Investor Risks & Due Diligence

• Three of the six rooms are vacant, so the estimated fully-let income is not current passing income.

• The £32,760–£35,880 annual rent is an auctioneer estimate and no sufficiently specific external rental comparable is supplied.

• No refurbishment or condition budget is supported; heating and parking information also requires confirmation.

• Additional seller fees may be payable under the Special Conditions of Sale but are not quantified.

• Operating costs, utilities, management, maintenance, voids and finance costs are not supplied.

• The supplied sold comparables are not confirmed as HMO properties and vary substantially in price, limiting their valuation usefulness.

• HMO licence and supporting compliance documentation should be verified before bidding.

Recommendation

Consider a BTL/HMO hold only after verifying the licence, tenancy documents, actual receipts, operating costs, condition and all special-condition fees. The advertised fully-let income is attractive against the guide, but the three vacancies and limited comparable evidence justify conservative bidding.

Strategy Rating

Analysis Confidence

The accommodation, tenure, occupancy, guide, known buyer fee and auctioneer rent estimate are supplied, but there is no specific rental evidence, no condition or works information, no confirmed HMO comparable valuation, and potentially additional seller fees are unspecified.