No. 5 Kelvin Street, Ferryhill, County Durham, DL17 8PA

Description

Auction House are delighted to offer to the market this tenanted two-bedroom mid-terraced property situated on Kelvin Street, Ferryhill. The property is currently let at £85 per week, providing an immediate rental income for prospective investors. Whilst the property is in a generally tired condition and would benefit from refurbishment and modernisation in the future, it offers excellent potential to enhance both the rental return and overall capital value. Conveniently located close to local shops, schools and everyday amenities, the property also enjoys good transport links to Durham, Bishop Auckland and the A1(M), making it a popular location for tenants. An excellent opportunity to acquire an income-producing investment with scope for future improvement.

Accommodation

Two-bedroom mid-terraced property

Location

Conveniently located close to local shops, schools and everyday amenities, with good transport links to Durham, Bishop Auckland and the A1(M).

Tenure / Property Information

Investment Analysis

The supplied sold evidence ranges from £31,000 to £60,000, with the most recent same-street comparable, No. 6 Kelvin Street, selling for £31,000 on 31 March 2025. Older same-street sales achieved £45,000-£60,000, but the subject is described as tired and requiring future refurbishment. A cautious base GDV estimate of £40,000 is used, with a low scenario of £31,000 and a high scenario of £45,000. The evidence is limited because condition, exact accommodation specification and tenure are not confirmed by the supplied data.

Investment Snapshot

Strategy Recommendation

Consider as a cash-flow BTL with staged refurbishment only after verifying the tenancy, legal pack, condition and achievable rent. Do not rely on a flip or BRRR strategy without confirmed costs and title information.

Works Required

Future refurbishment and modernisation is indicated by the auction description, but no specific defects or scope are supplied. Works should therefore be confirmed by inspection and the legal pack before bidding; no numerical refurbishment allowance is assumed.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £29,000 guide, the known purchase and admin costs total £32,600 before refurbishment and other possible auction charges. A 75% refinance against the £40,000 base GDV would be £30,000, but cash left in cannot be calculated reliably because refurbishment and special-condition costs are unknown. The strategy depends on confirming the tenancy, legal title and a realistic refurbishment budget.

Buy-to-Let Analysis

The stated rent of £85 per week equates to £4,420 per year, or approximately £368.33 pcm, producing a gross yield of 15.24% against the £29,000 guide price. Including the known £3,600 admin charge, the acquisition cost before refurbishment and any additional special-condition costs is £32,600, implying approximately 13.56% gross yield on that known cost only. The £631 pcm figure is an advertised asking rent rather than achieved rent, so it should not be relied on without evidence of achievable rent, tenancy terms, arrears status and expenses.

Flip Analysis

A base GDV of £40,000 indicates only £8,? before refurbishment, selling costs and all other acquisition charges when compared with the £32,600 guide-plus-admin figure; however, the precise surplus cannot be calculated because refurbishment costs, selling costs and additional auction charges are unsupported. The low £31,000 GDV scenario provides little apparent margin.

Investor Risks & Due Diligence

• Tenure and legal terms are stated to be in the legal pack but have not been supplied.

• The property is tenanted, but tenancy documentation, arrears position, deposit position and possession requirements are not provided.

• The property is described as tired and requiring refurbishment, but no inspection report or costed works schedule is supplied.

• Special Conditions of Sale may impose additional search, legal, transfer or seller-cost charges that are not quantified.

• The £631 pcm rental evidence is an advertised asking rent, not an achieved rent, and is materially above the stated £85 per week rent.

• Same-street sold prices vary materially and several comparables are older, making GDV uncertain.

Recommendation

Consider as a cash-flow BTL with staged refurbishment only after verifying the tenancy, legal pack, condition and achievable rent. Do not rely on a flip or BRRR strategy without confirmed costs and title information.

Strategy Rating

Analysis Confidence

The guide, current rent, admin charge and several same-street completed sales are supplied, but tenure, legal terms, property condition details, refurbishment costs, additional fees and achieved rental evidence are incomplete.