Investment Opportunity: Three Two-Bed Flats at Hazelbank, Pembrokeshire

This impressive property consists of three two-bedroom, three-bathroom flats, situated in a prime location in Pembrokeshire. With a large garden and extensive rear areas that offer potential for additional self-contained holiday units or a new build plot, this property presents multiple avenues for investment.

Property Overview

Currently arranged as three flats, the property has been vacant for approximately ten years. It boasts period features, including high ceilings and floor-to-ceiling sea-facing windows, adding charm and character. The total area is approximately 2,260 sq. ft., excluding loft space, with off-road parking available at the rear.

Investment Potential

1. Renovation and Conversion: The property can be renovated into three functional flats or converted into a large single dwelling. There’s also scope to develop the roof space into a 4-bedroom, two-storey penthouse-style apartment, complete with sea views and potential glass balustrades.

2. Valuable Location: The current market value stands at £240,000, with a recent purchase price of £180,000. With a gross development value estimated at around £550,000, this property has significant upside potential. A renovation budget of approximately £180,000 has been quoted, making this an attractive project.

Area Highlights

Located in Neyland, the property offers stunning sea views, which is a valuable asset. Many local flats are smaller, converted terraced houses that lack the amenities and privacy this property provides. The area is well-connected, with access to local schools, shops, and transport links, making it appealing to families, professionals, and potential tenants on income support. Milford Haven town center is just 10 minutes away, further enhancing the desirability of the location.

Exit Strategies

While traditional exit strategies may involve selling the apartments, the prime location also positions these units as excellent candidates for holiday apartments. The breathtaking views over the Pembrokeshire coastline make them particularly attractive for short-term rentals, tapping into the lucrative holiday market.

Comparable Market Analysis

Recent sales data indicate that sea-facing properties in the area achieve an average sale price of £268 per square foot. Given the potential for this property and its unique features, the re-sell value could exceed £750,000. A conservative estimate of £550,000 represents a sound investment strategy, considering the local market dynamics.

Conclusion

The three two-bedroom flats at Hazelbank offer an exceptional investment opportunity in Pembrokeshire. With multiple renovation options, a desirable location, and significant potential for value appreciation, this property is a prime candidate for investors looking for lucrative returns. We encourage potential buyers to visit and experience the breathtaking views and the immense potential firsthand.

Number of Apartments (current): 3 x2 bedroom apartments.

Is there potential to add a bedroom?: Yes, we have budgeted to convert the top flat into a 4-bedroom.

Property Asking Price: £240,000

Agreed Sale Price: £180,000

Fair Market Value (DUV): £550,000

Comparable 1: Sold £237,000: https://www.rightmove.co.uk/house-prices/details/england-108488798-19746466?s=6163e2242b507213dd6b01eefb991802eb56cfe85c42e71b9ad2e967a8901a73

Comparable 2: Sold £245,000: https://www.rightmove.co.uk/house-prices/details/england-94443009?s=1ed69571e6e31d69a4657e72b2de54ed41481248f99cae93e362f4c7a16b25ea

Comparable 3: Sold £258,000: https://www.rightmove.co.uk/house-prices/details/england-94443015?s=695ca2aa981075b357b209bfe14cee2595dc015af03798d890892ba68ac4b23d

Comparable 4: 34 Smoke House Quay, 10 Minutes away from Hazelbank Property: This property was sold in April 2022 for £260,000. The property is smaller (48 Sq.m instead of 70sq.m seen at the Hazelbank property). This equates to £504 per sq.ft for this property in this area. This property has sea views.

Comparable 5: Apartment 4, Murray Crescent House, 12 Minutes away from Hazelbank Property: This property was sold in July 2022 for £370,000. Property is larger in size (226 Sq.m instead of 140sq.m seen for the Hazelbank two-story loft conversion top floor flat). This equates to £154 per sq.ft for this property in this area. This property has sea views.

Market Status: off market

Why is the property being sold?: Distressed Seller

Is the property in a lettable condition: No

Is the sale price negotiable?: Yes

Property Type: Block of Flats

Freehold or Leasehold: Freehold

Is the property part of portfolio?: Unknown

Exit Strategy 1: Cash Purchase Flip (or bridge)

Exit Strategy 2: Serviced Accomodation (Hliday lets)

Exit Strategy 3: BTL

Potential Target Demographic: Retirement, First-time buyers, young families, professionals.

Refurbishments Required: 

Project Duration: 6 Months

Month 1: Preparation and Demolition

• Week 1-2: Rip Out Phase

• Remove existing fixtures, fittings, and finishes from all three apartments.

• Clear out any debris and prepare for construction.

• Week 3-4: Build Preparation

• Assess and sort services and utilities (gas, electric, water).

• Finalize plans for structural changes and attic access for the penthouse conversion.

Month 2: Structural Work

• Week 5-6: Structural Build Phase

• Construction of timber framing and stud walls as per new layouts.

• Begin civils work, including any necessary foundation adjustments.

• Week 7-8: Attic Conversion

• Access and prepare the attic space for the new rooms in the penthouse.

• Ensure structural integrity and compliance with building regulations.

Month 3: First Fixes

• Week 9-10: First Fix Electrical and Plumbing

• Install electrical wiring and plumbing systems in all apartments.

• Ensure all installations meet safety standards.

• Week 11-12: Windows and Doors

• Replace all windows and doors to ensure the property is water-tight.

• Select energy-efficient options to enhance insulation.

Month 4: Insulation and Internal Works

• Week 13-14: Insulation and Boarding

• Install insulation throughout the apartments, including the attic space.

• Board all walls and ceilings in preparation for plastering.

• Week 15-16: Plastering

• Complete plastering of all internal walls to create a smooth finish.

• Allow adequate drying time before proceeding to the next phase.

Month 5: Fixtures and Finishes

• Week 17-18: Fitting Kitchens and Bathrooms

• Install kitchens and bathrooms in all apartments, ensuring high-quality finishes.

• Include modern fixtures and fittings to maximize appeal.

• Week 19-20: Woodwork Installations

• Fit doors, skirting boards, and any other woodwork as required.

• Ensure all carpentry is completed to a high standard.

Month 6: Final Touches and Site Preparation

• Week 21-22: Painting and Decorating

• Complete all painting and decorating throughout the apartments.

• Use neutral colors to appeal to a broad range of potential tenants or buyers.

• Week 23: Flooring Installation

• Install flooring in all rooms, focusing on durability and aesthetics.

• Ensure all finishes are consistent and of high quality.

• Week 24: Final Second Fix and Site Clearance

• Complete final second fix of electrics and plumbing (light fittings, taps, etc.).

• Conduct final land clearance and prepare the rear for parking and presentation.

• Clean the site thoroughly, ensuring it is ready for viewing.

Budget Overview

• Renovation Costs for Apartments: £180,000

• Land Clearance and Parking Preparation: £20,000

• Professional Project Management: £15,000

Total Build Phase Budget: £215,000

This schedule outlines a comprehensive approach to the renovation of the three apartments, ensuring high standards and a timely completion. Regular progress meetings with the project manager will be essential to stay on track and address any challenges that arise.

Flip Figures

Purchase Price: £180,000

Refurb Costs: £215,000

Entry Legal Costs: £5000 (£2000 purchase, £2000 professional fees, £1000 contingency)

Exit Legal Costs: £3300

Stamp Duty: £9000

Survey Costs: £1000

Broker Fee: £500

Tiger Burrows Consultation Fee: £4997

Estimated 6 months bills costs: £3000

Estate Agent Selling Fees: £8580

Total Costs for investor: £430,377

Re-sale price (DUV): £550,000

Estimated Flip Profit: £120,000.00