96 Newmarket, Louth, LN11 9EQ

Description

A traditionally constructed, 3 bedroom mid terrace house, offered for sale with the benefit of an ongoing tenancy at £710 pcm (£8,520 per annum). The property offers well proportioned and versatile accommodation throughout, and the current market rents in this area, for properties of this size and in good order are circa £1,100 pcm (£13,200 per annum).

Accommodation

Ground Floor: Entrance Porch, Entrance Hallway, Lounge, Dining Room, Kitchen, Pantry, WC. First Floor: Bedroom 1, Bedroom 2, Bedroom 3, Family Bathroom. Outside: Good sized gardens to the rear, and a further garden to the front.

Location

The property is situated on Newmarket, Louth, a well regarded and popular central area of this traditional Lincolnshire market town. Louth offers a wide range of facilities and amenities, including eateries, shopping facilities and public houses, and is well located for access to surrounding towns and villages and the Lincolnshire Wolds.

Tenure / Property Information

Investment Analysis

Evidence is inconsistent: the subject sold for £140,000 in 2023, while nearby same-street terraced sales range from £130,000 to £253,000. A conservative base GDV of £140,000 is used, with £130,000 low and £250,000 high scenarios. The upper comparables may reflect materially different accommodation or condition, which is not evidenced.

Investment Snapshot

Strategy Recommendation

Consider as a tenanted buy-to-let at or near the lower guide, subject to tenancy and legal-pack review. Do not underwrite the deal using the £1,100 rent or high comparables without validation.

Works Required

No specific defects or refurbishment works are evidenced. Inspect condition, tenancy obligations and legal pack before bidding; any works allowance remains unquantified.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the £140,000 base GDV, 75% refinancing is £105,000. Against the £93,600 purchase-and-known-fee figure, this indicates £11,400 cash potentially released, before finance, tax, works and other costs. The result is highly sensitive to the uncertain GDV and unquantified refurbishment requirement.

Buy-to-Let Analysis

At the £90,000 lower guide, the existing £710 pcm rent produces an indicative 9.47% gross yield before costs. The auctioneer’s £1,100 pcm figure would produce 14.67%, but this is an estimate rather than achieved rent. Calculations exclude finance, tax, maintenance, management, voids, disbursements and any works.

Flip Analysis

At the lower £90,000 guide, the base GDV implies £46,400 before selling costs, finance, tax and works. No supported selling allowance or refurbishment cost is available, so a reliable flip surplus cannot be established.

Investor Risks & Due Diligence

• Existing tenancy terms and rent review position require legal-pack and tenancy-document verification.

• The £1,100 pcm figure is an auctioneer estimate and not achieved rent.

• Comparable values vary materially from £130,000 to £253,000.

• Condition and refurbishment costs are not evidenced.

• Buyer, admin, disbursement and other potential costs may exceed the known £3,600 fees.

Recommendation

Consider as a tenanted buy-to-let at or near the lower guide, subject to tenancy and legal-pack review. Do not underwrite the deal using the £1,100 rent or high comparables without validation.

Strategy Rating

Analysis Confidence

Rent and fee evidence is available, but condition, tenancy terms, disbursements and reliable current market value evidence are incomplete and comparable sale prices vary substantially.