Apartment 409, Prosperity House, Gower Street, Derby, Derbyshire, DE1 1SB

Description

Two-bedroom, fourth-floor apartment in Derby city centre. The property is sold with a tenant in situ, currently achieving £800pcm. Prosperity House is situated on Gower Street, close to the city centre, local shops, supermarkets, restaurants, leisure facilities, transport links and Derby train station.

Accommodation

Fourth Floor: entrance hall, kitchen/living/dining, two bedrooms, bathroom

Location

Derby city centre location on Gower Street, close to amenities, road links and the train station. The local train station runs regular services into London St Pancras.

Tenure / Property Information

Investment Analysis

Five completed sales in Prosperity House range from £39,950 to £72,602, with a median of £55,000 and an average of approximately £54,510. A base GDV of £55,000 is supported by the comparable evidence, subject to the subject flat's condition, floor, outlook, service charge and exact lease terms. The £25,000 guide is materially below the comparable range, but the eventual auction price is unknown.

Investment Snapshot

Strategy Recommendation

Conditional income-led BTL is the strongest apparent strategy because the property has a reported tenant and £800pcm passing rent. Proceed only after verifying the tenancy, leasehold charges, special conditions and all completion costs; BRRR is a secondary possibility if bought close to guide.

Works Required

No specific defects or refurbishment requirements are stated. Allow for inspection and verification of the kitchen, bathroom, finishes, heating, windows, common parts and EPC-related issues before bidding; no refurbishment budget can be supported from the evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At a £55,000 base GDV, 75% refinancing is £41,250. The guide plus the known £1,800 documentation fee is £26,800 before any works, seller fees, finance and tax, but total project cost and cash left in cannot be calculated reliably. BRRR potential exists at the guide level, subject to valuation, lender acceptance of the leasehold/tenancy, service-charge information and the eventual purchase price.

Buy-to-Let Analysis

The tenant is reported to be paying £800pcm, giving annual rent of £9,600. This equates to 38.4% gross yield on the £25,000 guide or approximately 17.5% against the £55,000 base GDV, before service charge, ground rent, management, maintenance, voids, finance, tax and purchase costs. The £850pcm figure is an advertised asking rent, not achieved rent. BTL may be attractive if the rent is verified and leasehold costs are reasonable, but the total-cost yield cannot be established because refurbishment, seller fees and leasehold charges are not supplied.

Flip Analysis

The completed sales support a broad resale range of £39,950 to £72,602, with a £55,000 base case. A flip surplus cannot be calculated because no refurbishment budget, selling allowance, finance cost, tax or complete purchase-cost figure is supplied. The tenant in situ may also affect vacant possession and resale strategy.

Investor Risks & Due Diligence

• The £25,000 figure is only an auction guide and the final purchase price is unknown.

• Leasehold service charge, ground rent and reserve-fund obligations are not supplied.

• Additional seller fees may apply under the Special Conditions of Sale.

• The tenancy, deposit, payment history and any arrears or management obligations require verification.

• Condition and refurbishment requirements are not evidenced.

• Parking and heating details are not supplied.

• EPC rating is D and may require future compliance or improvement consideration.

• The £850pcm rental evidence is an advertised asking rent, not an achieved rent.

• Comparable sale prices vary substantially from £39,950 to £72,602.

Recommendation

Conditional income-led BTL is the strongest apparent strategy because the property has a reported tenant and £800pcm passing rent. Proceed only after verifying the tenancy, leasehold charges, special conditions and all completion costs; BRRR is a secondary possibility if bought close to guide.

Strategy Rating

Analysis Confidence

The analysis has five same-building completed sales and reported passing rent, but lacks service charge, ground rent, tenancy documentation, condition, seller fees, finance costs and special-condition details.