Methodist International House, 68 Daisy Bank Road, Manchester

Description

A substantial residential letting property generating a gross passing rent of £263,028 per annum. The property occupies a site extending to approximately 0.8 acres and comprises a former Victorian mansion, dating to c1888, with extensions and further buildings understood to provide 69 letting rooms, of which 30 are currently let. The property offers significant asset management potential through the letting of vacant rooms, rental growth and potential redevelopment opportunities, subject to obtaining the necessary consents. Offered on the instructions of Administrators.

Accommodation

Former Victorian mansion with extensions and further buildings understood to provide 69 letting rooms, together with multiple shared kitchens, bathrooms, living spaces, a dining room, manager's office and laundry room. Externally, there is a recreational courtyard and communal gardens.

Location

The property fronts Daisy Bank Road in the Victoria Park suburb of Longsight, approximately two miles south-east of Manchester City Centre. The area benefits from community facilities, schools, supermarkets and eateries. The location is served by local bus routes, the nearby A6 and A34, access to the Metrolink network and Ardwick railway station, alongside wider rail connections from Manchester City Centre.

Tenure / Property Information

Investment Analysis

The property is a substantial long-leasehold HMO with approximately 809 years remaining, 69 understood letting rooms and gross passing rent of £263,028 per annum, but only 30 rooms are currently let. The current passing rent equates to £21,919 pcm and a gross yield of approximately 13.15% against the £2,000,000 guide, before the 1.8% buyer premium, operating costs, finance, works and other fees. The 2021 Land Registry sales for the same property ranged from £1,700,500 to £2,300,000, but these are historic and conflicting and do not establish a current GDV. The available external comparables are not sufficiently similar for a reliable valuation. No refurbishment cost, capital expenditure, operating-cost or capitalisation-rate evidence is supplied, so GDV and a maximum bid cannot be supported.

Investment Snapshot

Strategy Recommendation

Treat as an income-led HMO asset-management acquisition only if the legal pack verifies the passing rent, room count, licences, compliance, lease and vacant-room condition. Do not bid above a separately evidenced income valuation after allowing for the buyer premium, unknown fees, operating costs and any required works.

Works Required

No physical defects or refurbishment requirements are evidenced. The supported opportunity is operational: letting vacant rooms, reviewing rental levels and assessing any redevelopment potential, subject to legal, planning, licensing, building-regulation and other required consents. The cost of these activities is unknown.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be reliably underwritten because no current GDV, refurbishment budget, finance terms or capitalisation evidence is supplied. A 75% GDV refinance figure is therefore unsupported. The principal potential is increasing occupancy from the stated 30 let rooms, but the costs, consents, compliance position and achievable rents for vacant rooms are unknown.

Buy-to-Let Analysis

At the £2,000,000 guide, the stated gross passing rent produces approximately 13.15% gross yield, or £21,919 pcm equivalent. This is a gross, not net, return and reflects only 30 of approximately 69 rooms being let. The 1.8% buyer premium would be £36,000 at the guide, taking the known purchase price plus premium to £2,036,000 before unknown works, operating costs, finance and other special-condition fees. Net yield cannot be established from the supplied evidence.

Flip Analysis

A flip appraisal cannot be supported. The two 2021 sales recorded against the property (£1,700,500 and £2,300,000) are historic and conflicting, while no works budget, current GDV or selling-cost allowance is available. Any resale surplus would therefore be speculative.

Investor Risks & Due Diligence

• Only 30 of approximately 69 rooms are currently let, creating material occupancy and income risk.

• The stated rent is gross passing rent; operating costs, voids, management, maintenance, utilities, finance and taxation are not supplied.

• No sufficiently specific external rental comparable or auctioneer rent estimate is available.

• The 2021 sales for the same property are conflicting and historic, so they do not establish current market value.

• Potential redevelopment and vacant-room letting are subject to necessary consents and unknown compliance or capital costs.

• Buyer premium is specified, while additional special-condition fees remain unknown.

• The sale is being conducted on the instructions of Administrators.

• Parking is limited to the front with additional on-road parking only.

Recommendation

Treat as an income-led HMO asset-management acquisition only if the legal pack verifies the passing rent, room count, licences, compliance, lease and vacant-room condition. Do not bid above a separately evidenced income valuation after allowing for the buyer premium, unknown fees, operating costs and any required works.

Strategy Rating

Analysis Confidence

The evidence provides a guide price, passing rent, occupancy indication, lease term and two historic sales, but lacks current valuation evidence, rental comparables, operating costs, condition details, refurbishment costs, licensing/compliance information and special-condition fees.