BTL · Property AnalysisA 3-storey end-terrace property located in Batley (WF17). This is an auction property requiring full renovation. The combination of three floors and potential for a third bedroom makes this a strong BRRR candidate if the loft area is successfully converted/finished.
Based on a conservative estimate for a fully refurbished 3-bed terrace in this area, we project a rent of £950 pcm. The gross yield is attractive at 9.1% (based on a £125k purchase). The ROCE accounts for total capital deployed (deposit, stamp duty, renovation, and fees). This return is contingent on securing the property near the starting bid and managing refurbishment costs tightly.
Cash flow is positive, assuming a 75% LTV interest-only mortgage at 5.5%. Costs include mortgage interest (£430), agency fees (12%), and a 10% provision for maintenance/voids. While positive, the margin is sensitive to interest rate hikes; consider fixing for 5 years.
Growth is driven by forced appreciation. By converting the attic/modernizing the 3 floors, you create a 3-bed home from a tired 2-bed. Market comps for 3-beds in the area are hitting £160k-£180k. Batley is a value-driven area; long-term growth will likely track modest regional averages rather than city-center hotspots.
High demand for affordable family housing in Batley. The 3-storey layout is flexible, appealing to professional sharers or growing families. Void risk is minimal if the finish is modern, neutral, and clean. Being an end-terrace adds curb appeal and natural light, which is a significant selling point for prospective tenants.
The property is currently in a state of neglect, which is perfect for a BRRR strategy. It requires a full gut, re-plastering, new electrics, and plumbing. The 3-storey layout is a significant asset.
Add-Bedroom Potential: Yes. The listing mentions "arranged across three floors". An attic room is likely present. If this can be brought up to building regs (fire door, insulation), this becomes a 3-bed property, which will significantly increase the rental value and ARV.
Moderate risk. The primary risk is the auction format (non-refundable fees and quick completion), not necessarily the property itself. The condition is "dated" but not necessarily structural. Ensure the Legal Pack is reviewed by a solicitor to confirm no hidden defects or adverse title entries before placing a single bid.
Kitchen Units - Cost: £3000
Appliances - Cost: £1200
Bathroom Suite - Cost: £1000
Tiling - Cost: £500
LVT Flooring - Cost: £1500
Carpets - Cost: £1000
Internal Doors - Cost: £600
Paint/Wallpaper - Cost: £400
Light Fittings - Cost: £300
Radiators - Cost: £600
Consumer Unit - Cost: £500
Skirting/Architrave - Cost: £400
Garden Fencing - Cost: £500
Skip Hire - Cost: £400
Hardware/Fixings - Cost: £300
Full Strip Out - Cost: £1500
Plastering (All rooms) - Cost: £3500
Kitchen Fitting - Cost: £1500
Bathroom Installation - Cost: £1500
Electrical Rewire - Cost: £2500
Plumbing/Boiler - Cost: £2000
Flooring Install - Cost: £800
Carpentry - Cost: £1200
Painting/Decorating - Cost: £2000
Joinery - Cost: £1000
Garden Clearance - Cost: £800
Rubbish Removal - Cost: £400
Gas/Elec Certs - Cost: £400
Final Clean - Cost: £300
Snagging - Cost: £600
Total Estimated Duration: 12 Weeks || 3 Months
This property is a quintessential "heavy lift" project. The bones (3 floors, end-terrace) are good, but the condition is dated. The "development potential" is the key value driver here; by finishing the attic space to a high standard, you convert a standard 2-bed into a functional 3-bed, moving the property into a different price bracket in the Batley market.
However, the auction route is the biggest hurdle. You must ensure your cash-on-hand covers the 125% purchase-price-equivalent (for cash flow) plus the deposit *and* the renovation budget upfront, as you cannot draw down a mortgage before the purchase is complete. If you have the capital and the risk appetite for an auction purchase, the numbers support this as a viable BRRR project. Do not over-leverage on the bid; set a firm maximum bid price (including the 6% reservation fee) to ensure your ROCE remains above 5%.
Proceed, but only via strict financial discipline. This is a solid BRRR candidate. Focus on the loft conversion as the primary value-add. Ignore the auction excitement; set a maximum bid of £115k-£120k to account for the hefty reservation fees. High potential for long-term hold.