Flat 1, 26 St. James Road, Sutton, Surrey SM1 2TP

Description

A vacant ground-floor one-bedroom flat in a detached building, comprising reception room with open-plan kitchen, bedroom and bathroom. Leasehold with approximately 56 years unexpired. EPC F.

Location

St James Road is close to Sutton town-centre amenities, Manor Park, West Sutton station and Sutton railway station.

Investment Analysis

Investment Snapshot

Property & Refurbishment

I would initially allow £10,000–£18,000 for the works indicated by the listing, investor-grade finishing and contingency. This is an HB/AI feasibility allowance rather than a contractor quotation and should be replaced by survey and itemised trade pricing before bidding.

Rental Analysis

For sensitivity testing I would use an HB market-rent estimate of £1,350–£1,550 pcm. This equates to approximately £16,200–£18,600 per annum and 23.1%–26.6% gross on the guide. At midpoint rent and works, gross yield on guide plus works is about 20.7% before finance, management, maintenance, insurance, compliance, voids and tax.

GDV / Resale Analysis

For feasibility I would use an indicative £240,000–£300,000 completed-value range. This is an AI-assisted investment appraisal estimate and not a formal RICS valuation. Using midpoint assumptions gives an estimated completed value of about £270,000 against guide-plus-midpoint-works of approximately £84,000.

Properties Sold Within Approx. 5 Miles

No sufficiently specific sold comparables were independently verified in this market check. The GDV should therefore be confirmed against recent Land Registry/RICS evidence before bidding.

Potential BRRR Position

At the midpoint GDV of approximately £270,000, a purely illustrative 75% LTV refinance would be around £202,500. Against guide plus midpoint works of approximately £84,000, this should be viewed only as a sensitivity test; lender valuation, construction, lease length, rental stress tests and borrower criteria determine the actual refinance.

Flip Analysis

A resale strategy should be tested against the conservative end of the £240,000–£300,000 GDV range and must deduct acquisition tax, the £1,800 auction administration charge, legal fees, finance, holding costs, refurbishment, contingency and selling costs. Headline uplift is not the same as net profit.

Investor Risks & Due Diligence

• Obtain a specialist lease-extension valuation before bidding.




• Confirm Section 42 eligibility/assignment and all lease terms.




• Check EPC F implications for future letting and likely energy-upgrade requirements.




• Review service charge, ground rent and major works.

Recommendation

Preferred strategy: Lease Extension / Refurbish / Resale. The final decision should be based on verified works costs, rent, legal position and comparable-supported end value rather than guide price alone.

Strategy Rating

BRRR: ★★★☆☆

Buy-to-Let: ★★★★☆

Flip: ★★★★☆

Development: ★☆☆☆☆