🏡 Reno Opportunity: £35k Cumbria 2-bed terrace

Hello and welcome to today’s edition of The Reno Hunter newsletter! Today, we’re in Whitehave in Cumbria where 66 High Road is about to go to auction for what we believe is a great guide price for the right investor.

With a sale projection of £92.5k after renovation, this property could bring in 35%+ ROI on a cash purchase and renovation.

The Property 🏡

• Address: 66 High Road, Whitehaven, Cumbria CA28 9AG

• Agent: Auction House Cumbria

• Listed Price: £35k guide price (expect it to go for 10%+ of that)

• Comparable Sale: £90k (next door last year!)

🌱 🔗 View the property details on Rightmove 🔗 🌱

💡 Why We Like It 💡 

Strong Investment Potential

With a guide price of £35,000 and neighboring properties on High Road selling for significantly higher amounts—such as 68 High Road, which sold for £87,000 on 13th March 2024—there's substantial scope for value appreciation post-renovation.

• 66 High Road: The property has not been sold since before 1995, indicating long-term ownership.

• Neighbouring Sales: Recent sales on High Road include:

  • 68 High Road: Sold for £87,000 on 13th March 2024.

  • 64 High Road: Sold for £84,500 on 5th May 2022.

  • 56 High Road: Sold for £105,000 on 5th December 2022.

    The average property price on High Road is approximately £101,000 over the past year, indicating a stable property market in the area.

Desirable Features

The property includes two bedrooms, an upstairs bathroom, a front garden, and a rear garage, catering to the needs of potential buyers or tenants seeking practical amenities.

Proximity to Whitehaven's Attractions

Whitehaven is renowned for its rich maritime history and Georgian architecture. The town boasts over 250 Georgian listed buildings and has undergone significant regeneration, particularly around the harbor area, enhancing its appeal.

Access to Natural Beauty and Outdoor Activities

The property's location near the Lake District National Park offers residents easy access to stunning landscapes and a variety of outdoor activities, including the popular C2C Cycle Route, which starts in Whitehaven.

Connectivity and Amenities

Whitehaven is well-connected via the A595 road and the Cumbria Coast Line, facilitating convenient travel to nearby towns and cities. The town provides a range of shops, restaurants, and cultural attractions, particularly around the regenerated harbor area, ensuring a vibrant community life.

📊 Running The Numbers 📊

Here’s how the numbers stack up:

💰 Cost to Buy 💰

• Purchase Price: £38.5k (assume 10%+ of the £35k guide price, possibly more with something of this value)

• Stamp Duty (SDLT, assuming second home): £2k

• Legal Fees: £2k

• Agency Cost (Auction): £1.5k

• Total Cost to Buy: £44k

🔨 Cost to Renovate and Hold 🔨 

• Renovation Budget: £16-£24k

• Council Tax & Utilities during reno: £1k

💷 Cost to Sell and Revenue from Sale 💷 

• Agent Fees (1.5% of sale price): £1.5k

• Legal Selling Fees: £2k

• Total Selling Costs: £3.5k

• Projected Sale Price: £92.5k (conservative based on comparables)

📈 Summary 📈 

• Total Costs (Buy, Refurb, Hold, and Sell): £67.5k

• Profit: (Projected Sale Price - Total Costs) £25k

• ROI: (Profit / Total Costs) 37%

🛠️ Renovation Plan ⚒️ 

To bring this property to its full potential, here’s what’s needed:

• Interior Modernisation (painting, flooring, plastering): £5,000–£8,000

• Kitchen Upgrade (mid-spec): £4,000–£6,000

• Bathroom Upgrade (mid-spec): £3,000–£4,000

• Lighting and Fixtures: £1,500–£2,500

• Windows/Doors Repairs (if needed): £1,500–£3,000

• External Works (garden, yard, garage repairs): £2,000–£3,000

Total Estimated Refurb Costs: £16k - £24k

🔮 How it could look 🔮 

💡 Final Thoughts 💡

We believe this is a great opportunity if you have the cash ready to go and can keep the auction price to below £40k. The auction is happening in-person in Cumbria so you have a good chance of getting a good price here.

As always, do that due-dil!

Until next time…

Happy hunting,
The Reno Hunter Team

👉 Looking for renovation inspiration? Check out before-and-after renovation ideas on Instagram and Facebook

Disclaimer:

All projections are based on provided data and are subject to change. Always conduct your due diligence before proceeding with any property investment.