Apartment 312 Horizon House, Sunderland, Tyne and Wear, SR1 1HR

Description

An excellent opportunity to acquire a tenanted studio apartment situated within the prominent Horizon House development in Sunderland city centre, offering an immediate rental income of £450 per calendar month (£5,400 per annum). The apartment is currently occupied by a well-established tenant who has maintained an excellent payment history, with rent paid consistently on time and no arrears. The accommodation extends to approximately 13 sq. m (140 sq. ft) and comprises an entrance hallway, open-plan living and sleeping area, fitted kitchenette and separate shower room. The apartment benefits from large windows providing plenty of natural light and elevated views across the surrounding area.

Accommodation

Entrance Hall; Open-Plan Lounge/Bedroom – 3.2m x 2.2m; Fitted Kitchenette – 1.4m x 0.8m; Shower Room – 2.3m x 1.7m. Approximate floor area: 13 sq. m (140 sq. ft).

Location

Situated within Horizon House in Sunderland city centre, with access to shops, restaurants, leisure facilities and public transport links including Sunderland Railway and Metro Station. The University of Sunderland and local amenities are also within easy reach.

Tenure / Property Information

Investment Analysis

The five supplied completed sales are within Horizon House and range from £15,000 to £48,000, with two sales at £15,000, one at £27,000 and two at £48,000. As size, condition, floor, lease terms and service-charge details are not supplied, these provide only a broad indication. A base GDV of £27,000 is used, with low and high scenarios of £15,000 and £48,000 respectively. The current £450 pcm rent is supported by the property description, but no external rental comparables were identified.

Investment Snapshot

Strategy Recommendation

Prioritise a buy-to-let or refinance-led strategy only if legal due diligence confirms the tenancy, lease, service charges and all auction costs. Do not rely on the headline yield or base GDV without confirming these items.

Works Required

No refurbishment works are evidenced. Allowance should be made for inspection and verification only; the condition of the apartment, fixtures, communal areas and any compliance items is not supplied.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the £27,000 base GDV, 75% refinancing equates to £20,250. Against a base acquisition cost of £13,600, comprising the £10,000 guide midpoint and known £3,600 admin charge, the indicative cash left in is negative £6,650 before finance, tax and other costs. This appears potentially refinanceable on the supplied figures, but actual lending depends on valuation, lease terms, rent, service charges and lender criteria.

Buy-to-Let Analysis

At the guide midpoint of £10,000, the stated £450 pcm rent produces £5,400 annually and a 54.00% gross yield before costs. Including the known £3,600 admin charge, the gross yield is 39.71%. These are headline yields only: service charge, ground rent, management, insurance, maintenance, finance, tax and other auction charges are unknown. The established tenant and reported payment history are positive, but tenancy terms and rent review details are not supplied.

Flip Analysis

A base GDV of £27,000 exceeds the assumed £13,600 acquisition cost including the known admin charge by £13,400 before selling costs, finance, tax and any works. A reliable flip surplus cannot be calculated because selling costs and refurbishment costs are not supplied. The wide £15,000 to £48,000 comparable range and lack of size or condition details create substantial resale uncertainty.

Maximum Bid Indicator

This is an HB screening estimate based on the supplied evidence and HB assumptions. It is not a formal valuation or instruction to bid.

Investor Risks & Due Diligence

• Lease length, ground rent and service-charge liabilities are not supplied.

• Tenancy agreement, deposit position and full tenancy terms are not supplied despite the stated established occupation.

• Additional search, seller, legal and transfer charges may apply but are not quantified.

• The sold comparables vary widely from £15,000 to £48,000 and lack size, condition and floor-level details.

• The apartment is approximately 13 sq. m and may have a limited resale and lender market.

• No external rental comparables were identified, so the stated £450 pcm rent has not been independently benchmarked.

• Refinance depends on the lender's valuation, lease criteria and treatment of the small studio format.

Recommendation

Prioritise a buy-to-let or refinance-led strategy only if legal due diligence confirms the tenancy, lease, service charges and all auction costs. Do not rely on the headline yield or base GDV without confirming these items.

Strategy Rating

Analysis Confidence

There are several same-development completed sales and a stated passing rent, but comparable size and condition, lease details, service charges, tenancy documents, refurbishment requirements and additional auction costs are not supplied.