Flat 602, Horizon House, Sunderland, Tyne and Wear, SR1 1HS

Description

An excellent opportunity for investors to acquire this sixth-floor studio apartment within the popular Horizon House development in Sunderland city centre. The property is currently let at £500 per calendar month, producing a passing rental income of £6,000 per annum, providing an immediate income stream from completion. An affordable, ready-made investment opportunity which should appeal to landlords looking to add an income-producing property to their portfolio.

Accommodation

Approximately 16 sq m comprising an entrance hall, bathroom with shower, fitted kitchen area and an open-plan lounge/bedroom. The apartment benefits from a large window frontage providing plenty of natural light.

Location

Horizon House is conveniently positioned within Sunderland city centre, providing easy access to a wide range of shops, bars, restaurants and transport connections, making the development popular with tenants.

Tenure / Property Information

Investment Analysis

Same-development sold evidence ranges from £15,000 to £66,500, with recent sales at £15,000 and £18,500 in January and October 2025. The wide spread and absence of flat-specific details, floor areas or condition information make valuation uncertain. A cautious evidence-based base GDV of £18,500 is used, with £15,000 low and £66,500 high scenarios; the high case may not be directly comparable.

Investment Snapshot

Strategy Recommendation

Consider only as a cautious income investment if the final purchase price remains low and the tenancy, lease terms, service charges, arrears, resale restrictions and all auction charges are verified. Do not rely on the high comparable without flat-specific evidence.

Works Required

No refurbishment works are evidenced. The apartment is described as ready-made, let and EPC C. Allow for inspection, legal/lease review and any tenant, compliance or common-parts issues identified during due diligence; no works cost is assumed.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the cautious £18,500 base GDV, 75% refinance is £13,875. Cash required cannot be established because the purchase price, works allowance, leasehold costs and other charges are not fixed. The £3,600 admin charge is known, while other charges may apply.

Buy-to-Let Analysis

The passing rent is £500 pcm (£6,000 annually). Against the upper guide of £15,000, the headline gross yield is 40%; across the £5,000–£15,000 guide range it is approximately 40%–120%. This excludes the £3,600 admin charge, other possible charges, leasehold costs, finance, tax and maintenance, so net yield cannot be established.

Flip Analysis

A resale value cannot be reliably established from the broad £15,000–£66,500 same-development sales range because the comparable unit details are absent. No refurbishment cost or supported selling-cost allowance is available, so flip surplus cannot be calculated reliably.

Investor Risks & Due Diligence

• Lease term is not stated and may materially affect value, mortgageability and resale.

• Same-development sale prices vary widely from £15,000 to £66,500 and are not identified by unit, size or condition.

• The £3,600 admin charge materially affects returns at the guide price.

• Other charges may include search, seller-cost reimbursement, legal and transfer fees, but no amounts are supplied.

• The £500 pcm figure is passing rent, not an externally verified market rent; arrears, tenancy terms and management costs are not provided.

• Service charge, ground rent, building insurance and major-works exposure are not supplied.

• A sixth-floor leasehold apartment may have resale and lending considerations that cannot be assessed without further lease and building information.

Recommendation

Consider only as a cautious income investment if the final purchase price remains low and the tenancy, lease terms, service charges, arrears, resale restrictions and all auction charges are verified. Do not rely on the high comparable without flat-specific evidence.

Strategy Rating

Analysis Confidence

Passing rent, tenure, occupancy, admin charge and several same-development sales are supplied, but the lease term, service charges, other costs, exact comparable specifications, condition and final purchase price are unavailable.