Number 5 Kelvin Street, Ferryhill, County Durham

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 completed sales on Kelvin Street range from £31,000 to £60,000. A base GDV of £45,000 is used as a central supported scenario, with a low case of £31,000 and high case of £60,000. The wide range, limited property detail and unknown condition compared with the sold properties reduce valuation certainty.

Investment Snapshot

Strategy Recommendation

Consider as a tenanted buy-to-let with a later refurbishment review, subject to verifying the tenancy, rent payment history, legal pack, condition and all auction costs. Do not bid on the basis of the headline yield alone.

Works Required

Future refurbishment and modernisation is indicated by the description, but no specific defects or works schedule is supplied. Scope and costs should be established through inspection and the legal pack before bidding.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £45,000 base GDV, 75% refinance is estimated at £33,750. This exceeds the guide price plus the known administration charge, but the cash position cannot be calculated because refurbishment costs, finance costs, legal-pack charges and other acquisition costs are unknown. The strategy is therefore dependent on confirming condition, tenancy details and achievable refinance valuation.

Buy-to-Let Analysis

The stated passing rent of £85 per week equates to £4,420 per annum and an indicative gross yield of 17.68% against the £25,000 guide. Including the known £3,600 administration charge, the acquisition cost before refurbishment and other possible fees is £28,600, giving an indicative gross yield of approximately 15.45% before those further costs. Net yield cannot be established because operating costs, tenancy terms and additional fees are unknown.

Flip Analysis

A flip may have potential if the property can be modernised economically, given the £31,000 to £60,000 completed-sale range on the same street. However, refurbishment costs, selling costs and full acquisition costs are not supplied, so a reliable flip surplus cannot be calculated.

Investor Risks & Due Diligence

• The property is described as generally tired and refurbishment costs are unknown.

• The stated rent is a passing rent, but tenancy terms, arrears position and rent payment history are not supplied.

• The £3,600 administration charge applies, while buyer premium, legal-pack charges, seller-cost reimbursements, transfer fees and other disbursements are unknown.

• Same-street sold prices vary materially from £31,000 to £60,000, creating valuation uncertainty.

• Tenure is stated only as subject to the legal pack.

• Finance, tax, insurance, maintenance and management costs are not supplied.

Recommendation

Consider as a tenanted buy-to-let with a later refurbishment review, subject to verifying the tenancy, rent payment history, legal pack, condition and all auction costs. Do not bid on the basis of the headline yield alone.

Strategy Rating

Analysis Confidence

There is useful same-street completed-sale evidence and a stated passing rent, but refurbishment costs, tenancy terms, tenure, property-specific condition, full fees and operating costs are unavailable.