Capulet House, John Street, Stratford-upon-Avon, Warwickshire, CV37 6FE

Description

Investment secured upon a mid terraced building internally arranged to provide six self-contained flats. Gross initial yield: 15%.

Accommodation

Internally arranged to provide six self-contained flats.

Location

The property is situated on John Street, to the north of Guild Street. The A46 is easily accessible, providing access to the M5 and M40 motorways. Stratford-upon-Avon Railway Station is located 0.6 miles west, providing regular services to Birmingham and Worcester. A range of shops and amenities is available on Henley Street. Welcombe Hills is situated to the north.

Tenure / Property Information

Investment Analysis

The evidence identifies a freehold ground rent investment comprising six self-contained flats, each subject to a 125-year lease. The auctioneer states a 15% gross initial yield, but no annual ground rent, rent schedule, valuation, comparable evidence or lease-review details are supplied. The £10,000+ guide cannot therefore be independently converted into a market value or verified income yield.

Investment Snapshot

Strategy Recommendation

Consider only as a ground rent income investment after reviewing the leases, ground rent schedule, review provisions, collection history, title and all auction special conditions. Do not underwrite the stated 15% yield without the underlying rent figures.

Works Required

No refurbishment works are evidenced. The investment appears to concern the freehold ground rent interest rather than occupation or refurbishment of the six flats.

Rental & Market Context

Potential BRRR Position

BRRR is not supported by the evidence. No refurbishment opportunity, standalone property valuation, financing assumptions or refinance value is provided, and the asset is a freehold ground rent interest subject to six long leases.

Buy-to-Let Analysis

This is not presented as a direct buy-to-let acquisition of the flats. The stated 15% gross initial yield relates to the ground rent investment, but the annual ground rent and calculation basis are absent, so income and total-cost yield cannot be independently established.

Flip Analysis

A flip analysis cannot be supported because no GDV, comparable sales, resale evidence, works budget or selling-cost allowance is supplied. The investment appears income-oriented rather than a refurbishment resale opportunity.

Investor Risks & Due Diligence

• The annual ground rent and underlying calculation of the stated 15% gross initial yield are not supplied.

• The six leases and their ground rent review provisions, payment history and other material terms require review.

• Buyer, administration, seller and third-party additional charges are unspecified.

• No valuation or comparable-sales evidence is supplied to support the £10,000+ guide.

• The lessees have not elected pre-emption, but the legal implications and notice documentation should be verified in the special conditions and title documents.

Recommendation

Consider only as a ground rent income investment after reviewing the leases, ground rent schedule, review provisions, collection history, title and all auction special conditions. Do not underwrite the stated 15% yield without the underlying rent figures.

Strategy Rating

Analysis Confidence

The property structure, tenure, lease length, guide and stated gross initial yield are supplied, but annual ground rent, lease terms, valuation evidence, costs and sale comparables are missing.