Apartment 404, The Bar, St. James Gate, Newcastle upon Tyne, Tyne and Wear, NE1 4BA

Description

Upon instruction of Countrywide. Leasehold fourth floor flat.

Accommodation

One bedroom, reception room, kitchen, bathroom/WC

Location

The property is located on St. James Gate, which lies off Scotswood Road. Shops, cafes and restaurants are available within Newcastle City Centre to the north and Gateshead Town Centre to the south. Public transport links are available at Newcastle Train Station and Central Underground Station to the north east, along with local bus services. Road links include the A186 to the north, A167 to the east and A1 to the south west. Recreational pursuits can be found at Summerhill Park and Nuns Moor Park to the north west.

Tenure / Property Information

Investment Analysis

The five supplied completed sales within The Bar range from £92,500 to £156,000. With no unit-specific size, floor, condition or service-charge information for the comparables, £140,000 is used as a cautious base GDV, with £92,500–£156,000 as the evidence-supported observed range. The £58,000 guide represents a substantial discount to these sales, but the reason for the discount is not evidenced.

Investment Snapshot

Strategy Recommendation

Potentially attractive at the guide for a BTL or value-led purchase, subject to confirming the unusually low guide is not explained by condition, title, lease, service-charge or seller-fee issues. Do not bid to a fixed maximum until those costs and the unit’s condition are verified.

Works Required

No refurbishment works or defects are evidenced. Verify condition, lease documents, service-charge position, heating, parking and any compliance matters before bidding; no works allowance can be supported from the supplied evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £140,000 base GDV, 75% refinancing equates to £105,000. However, refurbishment costs, service charges, seller fees and other project costs are unknown, so total cost, cash left in and actual BRRR viability cannot be calculated. The 102-year stated remaining lease is not, by itself, a short-lease issue, but lease-cost terms require confirmation.

Buy-to-Let Analysis

The only rental evidence is an advertised £950 pcm asking rent for a nearby one-bedroom apartment at 2 St James Gate, not achieved rent for Apartment 404. At the £58,000 guide this indicates an ungeared gross yield of approximately 19.7%, before service charge, ground rent, management, maintenance, voids, finance and tax. Net yield cannot be established because leasehold costs and other operating costs are unknown.

Flip Analysis

The evidence indicates a potential gap between the £58,000 guide and comparable completed sales, with a £140,000 base GDV. A reliable flip surplus cannot be calculated because refurbishment requirements, purchase costs beyond the £1,800 contract-documentation fee, seller fees and resale costs are not supplied.

Investor Risks & Due Diligence

• Annual service charge and ground rent are unknown.

• The listing states possible additional seller fees, but their amount is not supplied.

• The unit’s condition and any required refurbishment are not evidenced.

• The rental evidence is an advertised asking rent for a nearby apartment, not achieved rent for this flat.

• The supplied comparable sales lack unit-specific size, condition and floor details.

• Parking and heating arrangements are unknown.

• The lease is stated as having 102 years remaining, but full lease terms and rent-review provisions require confirmation.

Recommendation

Potentially attractive at the guide for a BTL or value-led purchase, subject to confirming the unusually low guide is not explained by condition, title, lease, service-charge or seller-fee issues. Do not bid to a fixed maximum until those costs and the unit’s condition are verified.

Strategy Rating

Analysis Confidence

There are multiple completed sales in the same development and one nearby advertised rent, but unit-specific comparable details, achieved rent, condition, leasehold charges, refurbishment costs and possible seller fees are incomplete.