9 and 11 Derbe Road, Lytham St Annes, Lancashire

Description

Two semi-detached three-floor buildings, currently arranged as 9 self contained flats. The property is in need of modernisation and externally benefits from a rear yard. Well located for the local and recreational amenities of Lytham St Annes. Investment let at £30,780 per annum (plus vacant possession of two flats).

Accommodation

9 self-contained flats

Location

The property is located on Derbe Road which is situated between Clifton Drive South and Alexandria Drive. Local amenities can be found on Back St Anne's Road West, St Anne's Road West and Wood Street. Recreational amenities of Lytham St Annes Beach, Ashton Gardens and Royal Lytham and St Annes Golf Club are all easily accessible. Transport: St Annes-On-The-Sea - National Rail.

Tenure / Property Information

Investment Analysis

The £325,000 guide equates to approximately £36,111 per flat across nine self-contained flats. No completed sales, GDV evidence, refurbishment budget, buyer costs or formal valuation evidence has been supplied, so market value and maximum bid cannot be reliably established. The stated investment rent is £30,780 per annum, with two flats vacant. Using the supplied £725 pcm advertised asking rent as an indicative assumption for each vacant flat produces potential gross rent of £48,180 per annum, but this is not an achieved rent.

Investment Snapshot

Strategy Recommendation

Investigate as an income-producing freehold block, subject to verification of the passing rent, vacant-flat achievable rents, tenancy documentation, planning/use status, licensing and full refurbishment costs. Do not rely on the asking-rent uplift without evidence.

Works Required

Modernisation of the flats is required, but the evidence does not specify the scope, condition, compliance requirements or costs. Obtain a full building survey, individual flat inspections and confirmation of fire, electrical, gas, EPC and licensing compliance before budgeting works.

Rental & Market Context

Potential BRRR Position

A BRRR assessment cannot be completed because no refurbishment allowance, completed-sale evidence, GDV, finance costs or refinance valuation evidence has been supplied. The existing nine-flat arrangement and freehold tenure may support a refinance strategy, but modernisation and compliance costs need to be established first.

Buy-to-Let Analysis

At the guide price, the stated £30,780 annual investment rent gives a gross yield of approximately 9.47% before costs. If both vacant flats each achieve the supplied £725 pcm advertised asking rent, indicative gross rent rises to £48,180 per annum and the gross yield is approximately 14.82%. These figures exclude operating costs, voids, maintenance, management, compliance expenditure and finance. The vacant-flat rent assumption is not independently verified.

Flip Analysis

A flip analysis cannot be quantified because no GDV evidence, refurbishment cost, selling costs or completed comparables have been supplied. The existing investment letting and two vacant flats make an income-led assessment more supportable than a resale appraisal on the evidence provided.

Investor Risks & Due Diligence

• Two flats are vacant and the £725 pcm figure is an advertised asking rent rather than achieved rent.

• The property is stated to need modernisation, but the scope and cost of works are unknown.

• No information is supplied on leases, tenancy terms, arrears, deposits or the detail of the £30,780 annual income.

• Planning, use-class, HMO or other licensing and regulatory compliance is not evidenced.

• No buyer premium, administration charge, other fees, finance costs or selling costs are supplied.

• No completed sales or valuation evidence is available to support GDV or a maximum bid.

Recommendation

Investigate as an income-producing freehold block, subject to verification of the passing rent, vacant-flat achievable rents, tenancy documentation, planning/use status, licensing and full refurbishment costs. Do not rely on the asking-rent uplift without evidence.

Strategy Rating

Analysis Confidence

The property description, tenure, current rent, vacancy position and one advertised rental figure are supplied, but there are no sales comparables, GDV, works budget, fees, leases, EPCs, compliance details or verified rents for the vacant flats.