Flat 428, 2 Moorfields, Liverpool, Merseyside, L2 2BT

Description

A Fourth Floor Studio Flat Subject to a Periodic Tenancy Producing £7,800 Per Annum

Accommodation

Fourth Floor: Studio Room, Kitchenette, Bathroom.

Location

The property is situated on a residential road close to local shops and amenities. The open spaces of St John's Gardens are within easy reach. Transport links are provided by Liverpool Lime rail station.

Tenure / Property Information

Investment Analysis

The five supplied leasehold comparables at 2 Moorfields range from £30,000 to £40,000, with the two most recent sales at £30,000. A base GDV of £35,000 is supported, with a £30,000-£40,000 evidence-based range. The property has stated passing income of £7,800 per annum (£650 pcm), while asking-rent evidence ranges from £700 to £800 pcm. No refurbishment requirement is evidenced, so calculations use a nil works allowance only as a no-works scenario. The known-cost analysis includes the £1,800 administration charge but excludes unspecified disbursements, service charges, finance, tax and any unverified works.

Investment Snapshot

Strategy Recommendation

Consider only as an income-led purchase if the periodic tenancy, rent collection and leasehold costs are verified. Bid discipline is essential; a £30,000 maximum hammer-price scenario is supported by the recent £30,000 comparables, but the legal pack should be reviewed before bidding.

Works Required

No refurbishment works are evidenced in the supplied information. Verify condition, fixtures, services and any communal or leasehold obligations before bidding; the financial model assumes no works.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using a £30,000 purchase, nil evidenced works allowance and the £1,800 administration charge, known project cost is £31,800. A 75% refinance at the £35,000 base GDV would provide £26,250, leaving an indicative £5,550 before finance, tax, legal costs, disbursements and any works. This is not a strong BRRR capital-recycling outcome unless the property can be acquired below the analysis price or the valuation exceeds the base scenario.

Buy-to-Let Analysis

At the £30,000 analysis purchase price, the stated £7,800 annual rent produces a 26.00% gross yield before costs. Including the £1,800 known administration charge gives 24.53% on the known £31,800 cost. Net yield cannot be established because service charges, insurance, maintenance, management, council tax and other leasehold costs are not supplied. The £650 pcm figure is stated passing rent; the £700-£800 pcm evidence is advertised asking rent, not achieved rent.

Flip Analysis

The £35,000 base GDV is supported by supplied same-address sales ranging from £30,000 to £40,000. Against the £31,800 known-cost scenario, the apparent surplus is £3,200 before selling costs, finance, tax, legal costs, disbursements and works. No selling allowance is supplied, so a formal flip surplus after selling costs cannot be established. The limited apparent margin makes flipping unattractive.

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

• The property is subject to a periodic tenancy, so tenancy terms, rent payment history and possession position require verification.

• The £7,800 annual figure is stated passing rent; the higher rental evidence consists only of advertised asking rents.

• Service charges, insurance, ground rent and other leasehold costs are not supplied, preventing a net-yield assessment.

• Auction disbursements and other Special Conditions charges may be payable but are unspecified.

• Condition, EPC, council tax, parking and heating information is not supplied; the nil works allowance is therefore only a no-works modelling assumption.

• The GDV evidence relates to the supplied 2 Moorfields address and may not confirm the exact flat's individual condition or specification.

Recommendation

Consider only as an income-led purchase if the periodic tenancy, rent collection and leasehold costs are verified. Bid discipline is essential; a £30,000 maximum hammer-price scenario is supported by the recent £30,000 comparables, but the legal pack should be reviewed before bidding.

Strategy Rating

Analysis Confidence

Sales, tenure, lease length, occupancy and stated rent are supplied, but the exact unit-level comparability, leasehold charges, condition, EPC, council tax, disbursements and full legal-pack terms are not provided.