Reed Lodge, 11 Reed Vale, Teignmouth, Devon

Description

An attractive freehold investment comprising six let flats and a detached block of two garages on a private gated site in Teignmouth. The property is currently producing a gross rental income of approximately £64,764 per annum, with a current estimated rental value of approximately £71,400 per annum. The main building was converted and refurbished between 2007 and 2009 to provide four flats. A second building was purpose built in 2016/17 and provides two modern two-bedroom flats.

Accommodation

Flat 1: entrance, kitchen, lounge, bedroom, bathroom and own garden. Flat 2: hallway, lounge, kitchen, two bedrooms, bathroom, walk-in store and own garden. Flats 1 and 2 together extend to approximately 1,065 sq ft. Flat 3: approximately 1,181 sq ft, with hallway, open-plan lounge and kitchen, utility, master bedroom with ensuite, two further bedrooms, bathroom, own garden and balcony. Flat 4: approximately 914 sq ft, with hallway, lounge, kitchen, two bedrooms, bathroom with bath and separate shower, second bathroom and own balcony. Flat 5: approximately 566 sq ft, with hallway, kitchen, lounge/diner opening onto a balcony, master bedroom with ensuite, bedroom 2 and bathroom. Flat 6: approximately 560 sq ft, with hallway, kitchen, lounge/diner opening onto a balcony, master bedroom with ensuite, bedroom 2 and bathroom. The site also includes a detached block of two single garages.

Location

Reed Lodge is set in Reedvale, a residential road within walking distance of Teignmouth town centre, the railway station and the seafront.

Tenure / Property Information

Investment Analysis

No completed sales comparables or formal valuation evidence are supplied, so GDV and market value cannot be estimated reliably. The £875,000 guide equates to approximately 13.51 times current gross rent of £64,764 per annum and 12.25 times the auctioneer's estimated rental value of £71,400 per annum. Including the known £2,700 buyer fee, the analysed acquisition cost is £877,700 before any undisclosed special-condition fees, financing, taxes or ongoing costs.

Investment Snapshot

Strategy Recommendation

Consider as an income-led freehold residential investment, subject to verification of tenancies, rents, expenses, legal title, building condition and special-condition fees. Do not rely on BRRR or flip returns without an independent valuation.

Works Required

No specific refurbishment defects or required works are evidenced. The property is described as converted/refurbished and includes a modern 2016/17 building. Allowance should be made separately for routine maintenance and compliance after reviewing the tenancy, building and legal information; no numeric works allowance is supported.

Rental & Market Context

Potential BRRR Position

A refinance assessment cannot be completed because no supported GDV, lending valuation, finance terms or refurbishment budget is provided. The property is already let and income-producing, but the amount that could be released at refinance is therefore unquantifiable from the evidence.

Buy-to-Let Analysis

The six flats and two garages currently produce approximately £64,764 gross rent per annum, equivalent to a 7.40% gross yield on the £875,000 guide. At the auctioneer's estimated rental value of £71,400 per annum, the indicative gross yield is 8.16%. Using the known buyer fee, the current-rent yield is approximately 7.38% on £877,700. These are gross figures before management, repairs, insurance, utilities, voids, compliance, finance and any undisclosed auction costs. No external rental comparables or net operating costs are supplied.

Flip Analysis

A flip assessment cannot be supported because no completed sales comparables, GDV or selling-cost allowance is supplied. The evidence supports an income-investment analysis rather than a resale-margin calculation.

Investor Risks & Due Diligence

• Current gross rent of approximately £64,764 per annum is below the auctioneer's estimated rental value of £71,400 per annum; the uplift is not independently evidenced.

• The rental figure is an auctioneer estimate and no sufficiently specific external rental comparables are supplied.

• Gross yields exclude management, repairs, insurance, voids, compliance, finance and other ownership costs.

• Additional fees may be listed in the Special Conditions of Sale and are not included in the calculations.

• No EPC, tenancy schedules, lease information, operating-cost data or detailed condition evidence is supplied.

• No completed sales evidence is supplied to support a GDV or resale valuation.

Recommendation

Consider as an income-led freehold residential investment, subject to verification of tenancies, rents, expenses, legal title, building condition and special-condition fees. Do not rely on BRRR or flip returns without an independent valuation.

Strategy Rating

Analysis Confidence

The property description, occupancy and current/estimated rental income are supplied, but there are no completed sales comparables, external rental comparables, EPCs, operating costs, tenancy details, condition report or special-condition schedule.