Garages 43-50, Viney Avenue, Romsey, Hampshire, SO51 7NS

Description

This freehold site is situated in the attractive market town of Romsey. The site currently comprises eight vacant lock-up garages and also benefits from consent for demolition of the garages and construction of two, three-bedroom houses.

Accommodation

Proposed accommodation: Ground Floor—living/dining room, kitchen and cloakroom with W.C. First Floor—main bedroom with en-suite cloakroom with W.C., two further bedrooms and bathroom with W.C.

Location

Situated in the attractive market town of Romsey, Hampshire.

Tenure / Property Information

Investment Analysis

The site has consent for demolition of the eight garages and construction of two three-bedroom houses. Five completed Viney Avenue sales range from £300,000 to £345,000, with an average of £313,000 per property. Applying this evidence to two proposed houses gives a base GDV of approximately £626,000, with a cautious comparable-led range of £600,000 to £690,000. The comparables are existing terraced and semi-detached homes, so they are not direct evidence of the value of the proposed new-build houses.

Investment Snapshot

Strategy Recommendation

Investigate as a planning-led residential development rather than buying for the existing garage income. Proceed only after verifying the consent, obtaining a full build-cost appraisal and confirming acquisition, tax, finance and selling costs.

Works Required

Obtain and verify the planning consent and conditions, demolish the eight existing lock-up garages, clear and prepare the site, construct two three-bedroom houses in accordance with the consent, and provide the approved access and parking. Construction, professional, utility, finance and external works costs are not supplied.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

The apparent BRRR opportunity is driven by the consented development and the comparable-led base GDV of £626,000. A 75% refinance of this GDV would be approximately £469,500. However, refurbishment and construction costs, finance costs, fees, taxes and the planning documentation are not supplied, so total cost, equity requirement and cash left in cannot be calculated reliably.

Buy-to-Let Analysis

This is not currently a conventional buy-to-let asset: it comprises eight vacant garages and requires demolition and development. One advertised three-bedroom rent of £2,150 pcm supports an indicative aggregate rent of £4,300 pcm for two similar houses, but this is an asking rent rather than achieved rent and does not establish a firm valuation. The indicative gross yield on the £90,000 midpoint of the guide range is 57.3%, but this excludes all development and acquisition costs and should not be treated as a stabilised yield.

Flip Analysis

A development-and-sale strategy may be viable because completed Viney Avenue comparables are £300,000 to £345,000 per house. However, the flip surplus cannot be calculated because no construction, professional, finance, acquisition or selling costs are provided. The comparables also relate to existing homes rather than the proposed houses.

Investor Risks & Due Diligence

• Planning consent details, conditions and continuing validity have not been supplied.

• No construction, demolition, professional, utility, finance or external works costs are available.

• Buyer, administration, search, Stamp Duty Land Tax, Land Registry and possible VAT costs are unspecified.

• The sales evidence comprises existing terraced and semi-detached properties rather than the proposed new-build houses.

• The rental evidence is one advertised asking rent and is not an achieved or passing rent.

• The site currently comprises vacant garages, so no residential rent is available before development.

Recommendation

Investigate as a planning-led residential development rather than buying for the existing garage income. Proceed only after verifying the consent, obtaining a full build-cost appraisal and confirming acquisition, tax, finance and selling costs.

Strategy Rating

Analysis Confidence

The evidence includes a clear proposed scheme, five nearby completed sales and one advertised three-bedroom rent, but omits planning documents, build costs, fees, taxes, finance assumptions and direct new-build comparables.