Flat 124, Horizon House, Sunderland, Tyne and Wear, SR1 1HR

Description

A well-proportioned studio apartment situated within the popular Horizon House development in Sunderland, offering an attractive opportunity for investors seeking an affordable addition to their rental portfolio.

Accommodation

Approximately 22 sq m comprising an entrance hall, open-plan living/sleeping area with fitted kitchen and a separate modern shower room. The apartment also benefits from fitted storage and electric heating.

Location

Horizon House is conveniently positioned close to Sunderland city centre, providing easy access to local shops, amenities, transport links and the University of Sunderland.

Tenure / Property Information

Investment Analysis

Same-development sold evidence ranges from £15,000 to £48,000, with the two most recent supplied sales at £15,000 and another sale at £27,000. The £48,000 sales are older and the evidence does not confirm identical size, condition, lease terms or service charges. A base GDV of £27,000 is used, with £15,000 as the low case and £48,000 as the high case.

Investment Snapshot

Strategy Recommendation

Potentially suitable for BTL at or near the lower end of the guide, with BRRR only after verifying the lease, ongoing property charges, condition and refinance valuation. Do not rely on the high GDV case without stronger flat-specific evidence.

Works Required

No refurbishment works are identified in the supplied description. Allowance is therefore £0, subject to inspection and confirmation that the fitted kitchen, modern shower room, storage and electric heating are in satisfactory condition.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £15,000 upper guide, known purchase cost plus administration charge is £18,600 before any other costs. At the £27,000 base GDV, 75% refinancing equates to £20,250, indicating an indicative £1,650 surplus over those known costs before finance, tax, legal, valuation and other charges. This is highly dependent on achievable valuation, lease terms and lender acceptance.

Buy-to-Let Analysis

Using the £15,000 upper guide as the purchase figure and the £3,600 administration charge, annual rent of £6,000 produces a 40.0% gross yield on purchase price and 32.3% on purchase plus the known charge, assuming no works. The supported rent range is £500 pcm auctioneer estimate to £690 pcm advertised asking rent; the latter is not an achieved rent. Service charge, ground rent, insurance and other auction costs are not supplied, so net yield cannot be established.

Flip Analysis

Using the £27,000 base GDV less the £18,600 base cost gives a gross pre-sale, finance and tax difference of £8,400. No supported selling-cost allowance is available, so a net flip surplus cannot be calculated. The wide same-development sales range creates substantial valuation uncertainty.

Investor Risks & Due Diligence

• Lease length, ground rent and service charge information are not supplied.

• Additional auction costs may include searches, seller-cost reimbursement, legal fees, transfer fees, buyer premium and disbursements.

• The £690 pcm figures are advertised asking rents, not achieved rents.

• The £500 pcm figure is an auctioneer estimate and previously achieved rent, not confirmed passing rent.

• Same-development sale prices vary materially from £15,000 to £48,000, and comparable size, condition and lease terms are not supplied.

• No condition survey is provided, so the assumed £0 works allowance may be inadequate.

Recommendation

Potentially suitable for BTL at or near the lower end of the guide, with BRRR only after verifying the lease, ongoing property charges, condition and refinance valuation. Do not rely on the high GDV case without stronger flat-specific evidence.

Strategy Rating

Analysis Confidence

There are several same-development completed sales and rent indicators, but the evidence does not provide lease length, service charges, ground rent, condition survey, exact comparable specifications or all purchase costs.