Maisonettes 76-79 and Garages 52-63 Southgate, Sutton Hill, Telford, TF7 4HF

Description

A freehold investment secured on three blocks of maisonettes, sold off on long leases, together with twelve garage investments. Current gross income: £11,082.96 per annum.

Accommodation

Three freehold purpose-built blocks comprising four leasehold self-contained maisonettes, sold off on long leases, together with twelve self-contained single garages.

Location

Situated on Southgate, off Sutton Way in the Sutton Hill district of Telford, south of the town centre. The property has easy access to the rest of the Midlands via the M54 within a short drive.

Tenure / Property Information

Investment Analysis

The £90,000+ guide implies a gross income yield of approximately 12.31% before costs, based on the stated current gross income of £11,082.96 per annum. The two supplied sales for No. 80 Southgate (£85,500 in 2019 and £90,000 in 2023) provide nearby context but are not sufficient to establish a value for this larger freehold investment. No supported GDV or market-value range can therefore be calculated. The investment is occupied subject to existing tenancies and long leases, so value depends materially on the legal pack, income breakdown, lease terms and any special-condition costs.

Investment Snapshot

Strategy Recommendation

Consider as an income-led freehold investment at or below the guide only after reviewing the legal pack, verifying the £11,082.96 income and confirming all lease, tenancy and special-condition obligations. Do not underwrite on a refurbishment or flip basis.

Works Required

No refurbishment or repair works are evidenced. Allowance should be made only for routine management, maintenance and compliance obligations after reviewing the legal pack and tenancy information; no numeric works budget is supported.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot establish refinancing proceeds because no supported GDV or lender valuation is available. The asset is already occupied, comprises long-lease maisonettes and garage tenancies, and has no evidenced refurbishment plan. Refinance viability would require verified income, lease and tenancy documentation, full costs and an independent valuation.

Buy-to-Let Analysis

At the £90,000 guide, the stated current gross income of £11,082.96 per annum produces a gross yield of approximately 12.31%. Including the known £2,700 administration charge, the gross yield on £92,700 is approximately 11.95%. This is a gross, not net, assessment: costs for management, maintenance, insurance, voids, legal matters, taxation and any other charges are not supplied. The income is supported by the auction particulars, while the garage rental evidence is only an advertised £70 pcm asking rent.

Flip Analysis

A flip or resale surplus cannot be calculated because no supported GDV, refurbishment budget, selling allowance or detailed condition evidence is provided. The property is an income-producing freehold investment subject to existing tenancies and long leases rather than a vacant refurbishment opportunity.

Investor Risks & Due Diligence

• The investment is subject to existing tenancies and long leases, so vacant possession and control of the accommodation are not assumed.

• The stated £11,082.96 annual gross income is not accompanied by a full unit-by-unit income schedule or expense breakdown.

• The garage evidence is an advertised asking rent of £70 pcm, not an achieved or passing rent.

• Additional completion costs may be contained in the special conditions and are not quantified; stamp duty and government taxes are excluded.

• No condition, repair, compliance, insurance or maintenance information is supplied.

• Maisonette lease terms and remaining terms vary, with stated unexpired periods of 84, 87, 89 and 189 years.

Recommendation

Consider as an income-led freehold investment at or below the guide only after reviewing the legal pack, verifying the £11,082.96 income and confirming all lease, tenancy and special-condition obligations. Do not underwrite on a refurbishment or flip basis.

Strategy Rating

Analysis Confidence

The guide, administration charge, stated gross income, tenure, lease summaries and limited comparable evidence are supplied. However, there is no GDV evidence, detailed income schedule, operating-cost data, condition survey, EPC information or complete special-conditions cost schedule.