98 Chester Road, Brownhills, Walsall WS8 6DU

Description

Auction House Birmingham are proud to present this for sale this lovely, three-bedroom detached house, offering generously proportioned living and dining spaces, off-road parking, and a beautifully maintained rear garden. With scope for modernization, this is an appealing opportunity for buyers looking to shape a home around their own tastes and requirements. For cash purchasers prepared to investigate and address the potential flooring issue outlined below, the property offers the opportunity to take on a rewarding project and create a home for the years ahead. We have been advised that red ash may be present beneath the floors. Its presence, extent and any necessary remedial works require specialist investigation. On the information available, the property is considered unlikely to be mortgageable in its current condition and is therefore primarily suited to cash purchasers.

Accommodation

Lounge (4.32m x 3.62m); Dining Room (3.61m x 3.46m); Conservatory (3.46m x 2.77m); Kitchen (2.74m x 2.73m); Lobby; Ground Floor WC; Garage (5.12m x 2.60m); Bedroom One (3.36m x 3.54m); Bedroom Two (2.85m x 3.56m); Bedroom Three (2.40m x 2.62m).

Tenure / Property Information

• Tenure: Freehold
• Parking: Off-road parking.
• Services: Interested parties are requested to make their own enquiries to the relevant authorities as to the availability of services.

Investment Analysis

The latest supplied comparable is 90 Chester Road, a detached freehold sold for £270,000 in May 2021. Other supplied detached freehold comparables range from £249,950 in 2011 to £325,000 in 2015. A base GDV of £270,000 is used as an estimate, but the evidence is dated and does not confirm condition, size or specification relative to this property. The potential red ash issue materially limits valuation confidence.

Investment Snapshot

Guide / Starting Bid: £225,000 (plus fees)

HB Base GDV: £270,000

Monthly Rent: £1,150 pcm

Annual Income: £13,800

Gross Yield on Guide: 6.1%

75% Refinance on Base GDV: £202,500

Market Comparables

Recent HM Land Registry sold evidence

• 1. 90, CHESTER ROAD, BROWNHILLS, WALSALL, WALSALL, WS8 6DU — £270,000 — 2021-05-28 — Detached — Freehold
• 2. 78, CHESTER ROAD, BROWNHILLS, WALSALL, WALSALL, WS8 6DU — £325,000 — 2015-10-22 — Detached — Freehold
• 3. 64, CHESTER ROAD, BROWNHILLS, WALSALL, WALSALL, WS8 6DU — £163,000 — 2015-04-22 — Detached — Freehold
• 4. 84, CHESTER ROAD, BROWNHILLS, WALSALL, WALSALL, WS8 6DU — £249,950 — 2011-12-19 — Detached — Freehold
• 5. 84, CHESTER ROAD, BROWNHILLS, WALSALL, WALSALL, WS8 6DU — £90,000 — 2006-04-19 — Detached — Freehold

Proposed Works

Obtain specialist investigation of the reported potential red ash beneath the floors and establish the extent of any remedial works. Allow for general modernisation consistent with the description, but no quantified works allowance is supported by the evidence.

Rental Value

• 1. Houses to rent in Walsall Wood | OnTheMarket — 3 bed — £1,150 pcm — Advertised asking rent

HB Estimated Rent: £1,150 pcm

Low / Base / High Investment Scenario

LOW SCENARIO
HB GDV: £249,950

BASE SCENARIO
HB GDV: £270,000

HIGH SCENARIO
HB GDV: £325,000

BTL Analysis

Monthly / Annual Rent: £1,150 pcm / £13,800 pa

Gross Yield on Guide: 6.1%

The only rental evidence is a £1,150 pcm advertised asking rent for a three-bedroom house in Walsall Wood, not an achieved rent or confirmed rent for this property. At the £225,000 guide, this indicates approximately 6.13% gross yield before fees, works, finance, tax, insurance, maintenance and voids. Mortgageability is a major concern because the auction description states the property is considered unlikely to be mortgageable in its current condition.

BRRR Analysis

Guide Price: £225,000 (plus fees)

Base GDV: £270,000

75% Refinance: £202,500

A 75% refinance against the £270,000 base GDV would be approximately £202,500. Cash left in cannot be calculated because the red ash investigation, remedial works and general modernisation costs are unknown. BRRR viability therefore remains unproven and depends on a satisfactory specialist report and mortgageable finished condition.

Flip Analysis

Guide Price: £225,000 (plus fees)

Base GDV: £270,000

Using the £270,000 base GDV, a flip appraisal cannot be completed because refurbishment costs, remedial costs and any selling allowance are unsupported. The spread over the £225,000 guide is not a reliable surplus because the 1% plus VAT buyer premium, £2,040 administration charge, works and other possible disbursements must be deducted.

Strategy Recommendation

Proceed only as a specialist cash-led project after reviewing the legal pack and obtaining a satisfactory red ash investigation and costed remediation plan. Do not rely on the guide price for a BTL, BRRR or flip decision until total project costs are known.

Strategy Rating

★★☆☆☆

Key Risks

• Potential red ash beneath the floors; presence, extent and remedial requirements are unknown.
• The property is stated to be unlikely to be mortgageable in its current condition and is primarily suited to cash purchasers.
• Modernisation requirements are described but no costed scope of works is provided.
• Rental evidence is an advertised asking rent for another property and is not an achieved or passing rent.
• Buyer premium, administration charges and any legal-pack disbursements reduce returns.
• The supplied comparable sales are dated and do not establish an adjusted current value or condition equivalence.

Analysis Confidence

Low-Medium

There is useful same-street sold evidence and one rental asking figure, but the sales are dated, condition is unverified, the potential red ash issue is unquantified, and no refurbishment or selling costs are supplied.