Apartment 412 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 the heart of Sunderland city centre. The property is currently let at £450 per calendar month, generating an annual rental income of £5,400, making it an attractive proposition for investors seeking an immediate rental return. The apartment offers compact, self-contained accommodation extending to approximately 13 sq m (140 sq ft), comprising an open-plan living/bedroom area, fitted kitchenette with cooking facilities and storage cupboards, and a separate modern shower room with WC and wash hand basin. The accommodation benefits from contemporary fittings, neutral décor and large windows providing plenty of natural light and elevated views across the surrounding area.

Accommodation

Open-Plan Living/Bedroom – 3.2m x 2.3m; Kitchenette – 1.4m x 1.8m; Shower Room – 2.3m x 1.6m; Entrance Hall – 0.9m x 1.7m. Total Floor Area: Approximately 13 sq m (140 sq ft).

Location

Horizon House is a substantial residential development conveniently positioned within easy reach of Sunderland city centre, offering access to a wide range of shops, restaurants, leisure facilities and public transport links. Sunderland University and the city's transport connections are also readily accessible.

Tenure / Property Information

Investment Analysis

The evidence shows two 2025–2026 completed sales within Horizon House at £15,000, plus an older £27,000 sale and two £48,000 sales. The £48,000 transactions are older and may not be directly comparable. Given the subject's compact 13 sq m studio size, the base GDV is set at the recent £15,000 evidence level, with a supported scenario range of £15,000–£27,000. This remains indicative because comparable apartment sizes, lease terms and service-charge positions are not supplied.

Investment Snapshot

Strategy Recommendation

Prioritise a hold/BTL strategy if the tenancy, lease and all service-charge and ground-rent liabilities are satisfactory. The low guide and stated rent are attractive, but the £3,600 admin charge and unspecified additional costs require strict bidding discipline.

Works Required

No refurbishment works are evidenced. The description reports contemporary fittings, neutral décor and an EPC C. The model therefore allows £0 for works, subject to inspection and confirmation of the tenancy, fixtures and common-area condition.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using a £5,000 purchase, £0 works allowance and the known £3,600 admin charge gives a modelled base cost of £8,600. A 75% refinance against the £15,000 base GDV is £11,250, indicating £2,650 of theoretical cash surplus before finance costs, tax and unknown property or auction charges. Refinance is not guaranteed and depends on lender valuation, lease, tenancy and service-charge details.

Buy-to-Let Analysis

At the stated passing rent of £450 pcm, annual rent is £5,400. This produces a 108.00% gross yield on the £5,000 guide and 62.79% on the £8,600 modelled cost including the £3,600 admin charge. These figures are before service charge, ground rent, voids, management, maintenance, finance, tax and other auction costs, all of which are not quantified. The £500 pcm rental listing is asking rent rather than achieved rent.

Flip Analysis

At the £15,000 base GDV, the property has a £6,400 gross surplus over the £8,600 modelled acquisition cost before selling costs, finance, tax and any works. A reliable net flip surplus cannot be calculated because no selling allowance or full purchase-cost schedule is supplied. The compact studio format and variation in completed sales increase resale valuation risk.

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

• £3,600 admin charge materially increases the effective acquisition cost.

• Additional service charges, ground rent, search fees, seller costs, legal fees and transfer fees are not quantified.

• Lease length and lease covenants are not supplied.

• The tenancy agreement, deposit position and tenant payment history are not supplied.

• The £500 pcm figure is an advertised asking rent, not achieved rent.

• Comparable sale prices range widely and the comparable apartment specifications are unknown.

• The 13 sq m studio is compact, which may limit lender and resale appeal.

• Refinance proceeds are not guaranteed and may be affected by valuation, lease and lender criteria.

Recommendation

Prioritise a hold/BTL strategy if the tenancy, lease and all service-charge and ground-rent liabilities are satisfactory. The low guide and stated rent are attractive, but the £3,600 admin charge and unspecified additional costs require strict bidding discipline.

Strategy Rating

Analysis Confidence

The evidence includes a stated passing rent, known admin charge and several completed sales in the same development, but comparable specifications, lease details, service charges, ground rent, tenancy terms and other auction costs are missing.