Mineral House, 35 West Road, Mexborough, Doncaster, South Yorkshire, S64 9NL

Description

Auction House South Yorkshire presents this detached property arranged and ready for use as a fully compliant HMO property. The property has a fully compliant licence and a project annual income of £38,160. It could alternatively be arranged as a social housing/supported living property or C2 care facility subject to planning.

Accommodation

Six en suite bedrooms. Ground floor: entrance hallway, kitchen, living room, utility/storage cupboard/office-use space, and bedrooms one and two. First floor: utilities cupboard and four further en suite bedrooms. Outdoor space and off-street parking. Kitchen includes brand new appliances, two hobs, two ovens, two sinks, washing machine, dryer, two under-counter fridges and two under-counter freezers.

Tenure / Property Information

Investment Analysis

The supplied completed sales on West Road range from £89,000 to £153,000, with the two most recent sales at £120,000 and £128,000. These are detached freehold comparables but are not identified as HMO properties, so their application is limited. A base GDV of £128,000 is used, anchored to the latest comparable, with low and high scenarios taken from the supplied comparable range. The £150,000 guide is above the recent comparable evidence before allowing for the HMO income profile.

Investment Snapshot

Strategy Recommendation

Income-led hold only at a materially reduced bid, subject to confirming the project income, licence, operating costs and all auction charges. The guide price is not supported by the supplied comparable evidence for a BRRR or flip strategy.

Works Required

The property is described as ready for use as a fully compliant HMO, with six en-suite bedrooms and newly installed kitchen appliances. No refurbishment works are evidenced or priced. The £0 allowance therefore excludes latent defects, future maintenance and any additional compliance expenditure.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £150,000 guide, including the known £2,400 admin charge and no refurbishment allowance, the base cost is £152,400. A 75% refinance of the £128,000 base GDV would be £96,000, leaving indicative cash of £56,400 before finance, tax and other auction costs. To align the purchase and known admin cost with 75% of base GDV, the indicative maximum bid is £93,600, before unknown additional charges.

Buy-to-Let Analysis

Using the auctioneer's project annual income of £38,160, equivalent to £3,180 pcm, the gross yield is approximately 25.44% on the £150,000 guide and 25.04% including the known £2,400 admin charge. This is an estimate rather than passing rent, and no sufficiently specific external rental comparable was identified. Operating costs, voids, utilities, management and compliance costs are not supplied, so net yield cannot be calculated.

Flip Analysis

The £150,000 guide plus the known £2,400 admin charge already exceeds the £128,000 base GDV indicated by the comparable evidence, before selling costs and any unpriced works. The supplied comparables are not HMO-specific, and no selling allowance is provided, so a formal flip surplus is not stated.

Maximum Bid Indicator

This is an HB screening estimate based on the supplied evidence and HB assumptions. It is not a formal valuation or instruction to bid.

Investor Risks & Due Diligence

• The £38,160 annual income is an auctioneer project estimate rather than evidenced passing rent.

• No sufficiently specific external rental comparable was identified.

• The completed sales are detached freehold comparables but are not identified as HMO properties.

• The £150,000 guide exceeds the two most recent supplied comparable sales of £120,000 and £128,000.

• Additional search, seller-cost reimbursement, legal, transfer and other auction charges may apply but are not quantified.

• No allowance is available for latent defects, future maintenance or additional HMO compliance costs.

• Alternative social housing, supported living or C2 care use is subject to planning.

Recommendation

Income-led hold only at a materially reduced bid, subject to confirming the project income, licence, operating costs and all auction charges. The guide price is not supported by the supplied comparable evidence for a BRRR or flip strategy.

Strategy Rating

Analysis Confidence

The property description, tenure, HMO configuration, auctioneer income estimate, known admin charge and several completed sales are supplied. However, there are no HMO-specific sales or rental comparables, no achieved rent, no operating-cost data and several possible auction charges are unspecified.