Flat 8 Lilac House, Springhill Close, Walsall, WS4 1QJ

Description

A vacant leasehold second floor one bedroom flat Addendum: not being offered; expected for the October auction.

Location

Flat 8 Lilac House, Springhill Close, Walsall, WS4 1QJ Full listing coordinates are used for mapping: 52.617161, -1.948812.

Investment Analysis

Investment Snapshot

Works Required

• Services testing and compliance

• Targeted kitchen/bathroom repairs where required

• Decoration, flooring and joinery

• Roof/damp/windows/external repairs identified by survey

• Check service-charge major works before budgeting internal refurbishment

HB working works allowance: £14,000–£26,000. This is based on the auction description, accommodation and visible condition indicators; replace it with surveyor/contractor evidence before bidding.

Rental & Market Context

HB working market rent is £1,500–£2,000 pcm (£18,000–£24,000 p.a.), based on the bedroom count, property type and postcode market band. This is an HB estimate rather than an auctioneer figure.

Sold within 5m radius

Reliable recent like-for-like sold comparables were not established from the supplied scrape for this individual property. No comparable addresses or prices have been invented. Before bidding, verify the HB end-value range against HM Land Registry / current local sold evidence, matching property type, size, tenure, condition and micro-location.

GDV Assessment

HB indicative end value is £300,000–£535,000. For residential/income assets this is derived from the working market-rent range and a local gross-yield band of approximately 4.5%–6.0%, then checked against the current guide. Confidence is medium because a property-level sold-comparable set has not yet been verified.

Strategy Recommendation

Preferred strategy: BRRR / Buy-to-Let. The working purchase range is £35,000–£35,000 and the works allowance is £14,000–£26,000. The key question is whether the legal pack, condition and local market evidence support the income/end-value assumptions without exhausting contingency.

Potential BRRR Position

Using a mid-point purchase of £35,000 and mid-point works of £20,000, purchase + works is about £55,000 before SDLT, auction fees and finance. A 75% refinance on the HB £300,000–£535,000 end-value range is approximately £225,000–£401,250. At the mid-point, around £0 of purchase-and-works capital remains in the deal before acquisition/finance costs. HB BRRR rating: Strong.

Flip Analysis

Illustrative scenario: purchase £35,000, works £20,000, plus approximately £11,150 for acquisition, finance/holding and selling costs. Total working cost is about £66,150 against a mid-point end value of £417,500, giving an indicative pre-tax margin of £351,350 (84.2% of GDV). On these assumptions the flip is viable and is sensitive to bid competition, refurbishment overspend and resale evidence.

Commercial / Mixed-Use Analysis

Review passing rent/ERV, lease length, tenant covenant, repairs, VAT, business rates, service charges, vacant possession and lender criteria. Appraise residential and commercial elements separately where mixed use.

Investor Risks & Due Diligence

• Addendum: not being offered; expected for the October auction.

• Read the complete Bond Wolfe legal pack and special conditions, including buyer/admin fees

• Verify title, tenure, lease length, tenancy agreements and vacant-possession status

• Replace HB works assumptions with surveyor/contractor pricing

• Confirm mortgage/bridging and insurance availability for the exact asset type

• Re-check local rents and property-level sold comparables immediately before bidding

• Lot is not currently being offered; rebuild the appraisal if it reappears in a later auction

Maximum Bid Analysis

Guide £35,000+. HB considers the deal strongest around £35,000–£35,000. Above approximately £35,000, the conservative end-value/refinance margin begins to weaken materially. This is an investment sensitivity indicator, not a valuation or instruction to bid.

Recommendation

Overall HB view: BRRR / Buy-to-Let. Risk level: Medium; analysis confidence: Medium. The principal sensitivities are end value, rent and refurbishment cost. Proceed only if legal and physical due diligence supports the assumptions and leaves adequate contingency.

Strategy Rating

Buy-to-Let/Income: ★★★★☆ | BRRR: ★★★☆☆ | Flip: ★★★☆☆

Research Sources

https://www.bondwolfe.com/auctions/properties/362052-property-auction-walsall/ | https://www.bondwolfe.com/auction/3451/ | https://www.bondwolfe.com/addendum/