Land at Burdon Road, Sunderland

Description

The property comprises a high yielding land/parking investment fronting a busy main road. Arranged as a land parcel currently used as parking, the property is let on a licence to the Grand Central Railway Company from 03.09.2007 producing £6,500 per annum. The property is accessed and benefits from a frontage to Burdon Road, a busy arterial route connecting the principally residential area to the south of Sunderland with the town centre. Alternative use potential subject to consents.

Location

Fronting Burdon Road, a busy arterial route connecting the principally residential area to the south of Sunderland with the town centre.

Tenure / Property Information

Investment Analysis

The £25,000 guide equates to approximately 3.85 times the stated £6,500 annual licence income, producing a 26.00% gross income yield before costs. No completed-sale comparables, formal valuation, buyer premium, administration charge or other fees were supplied. The property is leasehold with approximately 143 years unexpired, but the licence terms, security of income, repairing obligations and termination provisions require legal-pack review. Alternative use is stated as subject to consents and cannot be valued from the evidence provided.

Investment Snapshot

Strategy Recommendation

Prioritise income-led acquisition due to the stated £6,500 annual licence income and low guide price relative to that income. Proceed only after confirming the licence enforceability, term, break/termination rights, rent review provisions, liabilities and all auction/legal costs.

Works Required

No refurbishment works are evidenced. The investment appears to require management and maintenance of the existing parking land only, subject to the licence and legal-pack obligations. No allowance has been added for works or maintenance because none is quantified.

Rental & Market Context

Potential BRRR Position

BRRR is not supported by the evidence. No refurbishment value uplift, residential conversion value, formal GDV or refinance valuation is provided. The leasehold interest and existing commercial parking licence would require specialist lender and legal review before any refinance assumption.

Buy-to-Let Analysis

This is not evidenced as a residential property and there is no residential rental evidence. Conventional BTL analysis is therefore not applicable. The relevant income is the stated £6,500 per annum licence income from Grand Central Railway Company, equivalent to a 26.00% gross yield against the £25,000 guide before costs. Passing-income security cannot be assessed without the licence documentation.

Flip Analysis

A flip appraisal cannot be established because no comparable sales, GDV, alternative-use valuation, works budget or selling-cost allowance was supplied. The stated alternative use remains subject to consents, so no resale surplus is calculated.

Investor Risks & Due Diligence

• The £6,500 income is stated licence income, but the licence terms and enforceability have not been supplied.

• Occupancy and income may be affected by licence expiry, termination or other contractual provisions not provided.

• The property is leasehold, with approximately 143 years unexpired; lease covenants, rent and liabilities require legal-pack review.

• Any alternative use is subject to consents and has not been valued.

• Buyer premium, administration charge and other acquisition costs were not supplied, so the calculated yield is before those costs.

• No maintenance, insurance, management or parking-operating costs were provided.

Recommendation

Prioritise income-led acquisition due to the stated £6,500 annual licence income and low guide price relative to that income. Proceed only after confirming the licence enforceability, term, break/termination rights, rent review provisions, liabilities and all auction/legal costs.

Strategy Rating

Analysis Confidence

The guide price, annual licence income, use, tenure and approximate lease term are supplied, allowing a gross income-yield calculation. Confidence is reduced by the absence of licence terms, comparable evidence, fees, costs, GDV, rent comparables and legal-pack detail.