Flat 5, 2 York Mews, Shaftesbury Avenue, Folkestone, Kent, CT19 4NR

Description

A first floor flat located in a residential area of Cheriton near Folkestone, with its comprehensive shops and facilities, as well as in close proximity to junction 11 of the M20 motorway.

Accommodation

First floor: open plan kitchen/living room, bedroom, study, shower room with W.C.

Location

Located in a residential area of Cheriton near Folkestone, close to comprehensive shops and facilities and junction 11 of the M20 motorway.

Tenure / Property Information

Investment Analysis

Two completed sales in the same development provide a wide evidence range: £116,000 for Flat 4 in March 2024 and £170,000 for Flat 2 in May 2024. The subject is described as a flat for improvement, but the comparable condition and specification are not supplied. A base GDV of £130,000 is used as a cautious estimate, with £116,000 low and £170,000 high scenarios. This is not a formal valuation.

Investment Snapshot

Strategy Recommendation

Proceed only subject to a satisfactory inspection, lease and fee review, and firm refurbishment quotations. The evidence supports investigating a value-add BTL or BRRR purchase, but the unknown works and auction costs make a flip or unconditional bid speculative.

Works Required

The flat is described as being for improvement, but no specific defects or scope are supplied. Obtain a full survey and quotations, assess the open-plan kitchen/living room, bedroom, study and shower room/W.C., verify services, and consider measures required to improve the EPC from E. Confirm the reported parking space and leasehold obligations.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the £130,000 base GDV, a notional 75% refinance is £97,500. However, refurbishment costs, buyer and administration charges, other auction fees, leasehold costs and finance costs are unknown, so total project cost and cash left in cannot be calculated. The strategy may work only if the improvement scope and purchase price remain tightly controlled.

Buy-to-Let Analysis

The only rental evidence is a £700 pcm advertised asking rent, equivalent to £8,400 annually; it is not an achieved or passing rent. Against the £80,000–£90,000 guide range, the gross yield is approximately 9.3%–10.5%, or 9.88% using the £85,000 midpoint, before works, service charges, management, voids, maintenance, finance and auction costs. Against the estimated GDV range, the gross yield is approximately 7.24% to 4.94%. BTL viability cannot be confirmed without actual costs and verified rental demand.

Flip Analysis

A potential resale value is supported by same-development sales ranging from £116,000 to £170,000, but the subject is for improvement and no refurbishment budget, selling allowance or condition comparison is available. A reliable flip surplus and maximum bid therefore cannot be calculated.

Investor Risks & Due Diligence

• The property is described as being for improvement, but the scope and cost of works are unknown.

• EPC rating E may require improvement works, although the required measures are not specified.

• The £700 pcm figure is an advertised asking rent rather than achieved or passing rent.

• Buyer, administration, search, other non-optional auction fees, Stamp Duty, Land Registry fees and VAT may apply but are not quantified.

• Leasehold service charge, ground rent, covenants and other lease terms are not supplied.

• The reported parking space is based on executor advice and should be verified.

• Same-development comparable prices range widely from £116,000 to £170,000, with no comparable condition or specification details supplied.

Recommendation

Proceed only subject to a satisfactory inspection, lease and fee review, and firm refurbishment quotations. The evidence supports investigating a value-add BTL or BRRR purchase, but the unknown works and auction costs make a flip or unconditional bid speculative.

Strategy Rating

Analysis Confidence

There are two recent same-development completed sales and one advertised rental, but no detailed condition report, refurbishment quotations, verified achieved rent, leasehold charges, auction fees or formal confirmation of the parking space.