Apartment 612 Horizon House, Sunderland, Tyne and Wear, SR1 1HS

Description

Self-contained studio apartment within the Horizon House development in Sunderland city centre, currently let at £500 per calendar month (£6,000 per annum).

Accommodation

Approximately 23 sq.m. (247 sq.ft.), comprising an entrance hallway, open-plan bedroom/living area with fitted kitchenette, and a separate modern shower room. The kitchenette has dark-coloured units, work surfaces, sink and cooking facilities. The shower room includes a glazed shower enclosure, wash hand basin, WC and heated towel rail.

Location

Horizon House is positioned within Sunderland city centre, with access to shops, restaurants, transport links and local amenities. Sunderland University and the city's main shopping areas are within easy reach.

Tenure / Property Information

Investment Analysis

The five same-development leasehold comparables range from £15,000 to £66,500, indicating substantial variation and insufficient detail to confirm direct unit comparability. A base GDV of £18,500 is used, supported by the recent £18,500 and £15,000 sales; £15,000 is used as a low case and £66,500 as a high case. The £66,500 sale is treated as an outlier rather than the base case. The apartment is currently let at £500 pcm, but no external rental comparables, lease details, service charge, ground rent or tenancy terms are supplied.

Investment Snapshot

Strategy Recommendation

Potential cash-flow BTL at the guide price, subject to verifying the tenancy, lease, service charge, ground rent, legal title, lenderability and all auction charges. Do not rely on the high comparable or refinance case when bidding.

Works Required

No refurbishment works are evidenced in the supplied description. The studio has a fitted kitchenette and modern shower room. Allowance for repairs, compliance works, service charges and lease-related costs cannot be quantified from the evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the £18,500 base GDV, 75% refinancing would be approximately £13,875. Against the £8,600 purchase plus known admin charge, this indicates £5,275 of indicative surplus capital before finance, tax, refinance costs, leasehold costs and any works. However, the comparable range is very wide and the lease, lenderability and property-specific valuation are unconfirmed, so refinance proceeds are not dependable.

Buy-to-Let Analysis

At the £5,000 guide, the current £500 pcm rent produces £6,000 annual rent and a 120.00% gross yield before the £3,600 admin charge. Including that known charge, the gross yield is 69.77% on £8,600 total known acquisition cost. These figures exclude any service charge, ground rent, management, finance, tax, legal, search, transfer or other auction costs, all of which are unknown. The rent is a passing rent reported by the seller, with no tenancy terms or external rental evidence supplied.

Flip Analysis

On the base case, £18,500 GDV less the £8,600 purchase and known admin charge indicates £9,900 before selling costs, finance, tax, legal costs, unknown auction charges and any works. A formal flip surplus is not calculated because no supported selling-cost allowance or refurbishment budget is available. The wide comparable range creates material resale-value risk.

Investor Risks & Due Diligence

• Same-development sale prices range widely from £15,000 to £66,500, with no unit-specific details supplied.

• The £3,600 admin charge is material relative to the guide price.

• Additional search, seller-cost reimbursement, legal, transfer and other charges may apply but are unquantified.

• Lease length, service charge, ground rent and other leasehold obligations are not supplied.

• Current tenancy terms, rent review position, arrears status and deposit information are not supplied.

• No external rental comparables or independent valuation evidence are available.

• The high-case GDV and refinance calculation may not be achievable.

Recommendation

Potential cash-flow BTL at the guide price, subject to verifying the tenancy, lease, service charge, ground rent, legal title, lenderability and all auction charges. Do not rely on the high comparable or refinance case when bidding.

Strategy Rating

Analysis Confidence

The passing rent, guide price, known admin charge and same-development sales are supplied, but comparable unit details, lease terms, ongoing leasehold costs, tenancy documentation, additional auction charges and refurbishment requirements are unavailable.