EXAMPLE FULL UNDERWRITE
1. The property
Detached three-bedroom bungalow on Nursery Hill. Approximately 850 sq ft (79 m²), with driveway, garage and private garden. The property requires modernisation throughout and is being sold by Modern Method of Auction at a guide price of £375,000.
2. Price history — very important
First marketed at £475,000 in January 2026, reduced to £425,000 in May and reduced again to £375,000 on 31 July. The total reduction is £100,000, or 21%. The repeated reductions indicate a motivated vendor, but the auction structure and fees must be included before treating the whole discount as usable margin.
3. Sold comparables
All sales are on Nursery Hill. The strongest evidence is 14 Nursery Hill because it is a same-road detached bungalow with a verified floor area and a recent completed sale. The broader group provides a useful range but requires adjustment for type, size and condition.
| Address | Type | Floor area | Sold price | Sale date | £/sq ft |
|---|---|---|---|---|---|
| 14 Nursery Hill | Detached bungalow | 1,098 sq ft | £600,000 | Jan 2024 | £547 |
| 24 Nursery Hill | Detached | 1,593 sq ft | £645,000 | Jul 2024 | £404 |
| 3 Nursery Hill | Semi-detached | 1,022 sq ft | £560,000 | Aug 2025 | £547 |
| 49 Nursery Hill | Semi-detached | 1,194 sq ft | £585,000 | Mar 2025 | £490 |
| 65 Nursery Hill | Semi-detached | 839 sq ft | £420,000 | May 2024 | £501 |
4. Primary comparable and estimated value calculation
14 Nursery Hill is the strongest primary comparable: same road, matching detached-bungalow type, measured floor area and a completed sale. Its larger size requires a modest size adjustment before applying the rate to the subject.
This is a benchmark comparison, not projected profit.
Indicative value evidence. Exact subject identity and condition still require confirmation before the figure is treated as verified.
5. Acquisition costs
The 4.5% auction reservation fee is approximately £16,875. The buyer information pack, SDLT, legal costs, survey and finance also reduce the apparent discount.
6. Refurbishment costs
General refurbishment should be planned at £40–£60 per sq ft. For this Surrey property, the higher end is the safer starting point: about £46,750 at £55 per sq ft. Extensions, loft work, structural issues and abnormal works remain separately costed.
7. Development potential
The sensible routes range from modernising the existing bungalow to a modest extension or a properly designed loft/extension scheme. Maximum development is not automatically the most profitable route.
| Scheme | What is involved | Approx. size | Underwritten GDV |
|---|---|---|---|
| Modernise existing | Refurbish the current accommodation | 850 sq ft | £490k–£515k |
| Good extension | Rear or side extension, subject to design | 1,050–1,150 sq ft | £575k–£615k |
| Four-bedroom chalet | Loft conversion and improvement | 1,200–1,350 sq ft | £625k–£675k |
8. Planning considerations
Shamley Green is within the Surrey Hills National Landscape. Loft and rear/side extensions may be possible, but the planning and permitted-development position must be checked carefully. Nearby precedent supports investigation; it does not guarantee consent.
9. What could kill the deal?
- Planning refusal or restrictive conditions
- Overlooking or neighbour objections
- Hidden structural or services work
- Build-cost inflation
- Auction uncertainty and competing bidders
10. Underwriting view
The evidence supports a strong opportunity. Same-road evidence indicates a working as-is value around £473,000, leaving meaningful headroom against the guide. The opportunity still depends on fee-aware acquisition, condition, exact identity and a disciplined development route.
11. Maximum bid
| Purchase price | 4.5% auction fee | Approx. all-in acquisition | View |
|---|---|---|---|
| £365,000 | £16,425 | About £410,000 | Strong |
| £375,000 | £16,875 | About £421,000 | Buy if checks hold |
| £385,000 | £17,325 | About £433,000 | Still workable |
| £400,000 | £18,000 | About £450,000 | Margin becoming thin |
| £425,000 | £19,125 | About £479,000 | Walk away |
12. Preferred strategy
Buy around the guide only after the evidence and condition checks hold. Plan first for a well-controlled refurbishment, then compare a modest extension or four-bedroom chalet scheme against the extra cost and realistic finished value.
13. Next move
Confirm the exact house identity, title, auction pack and planning history. Inspect the property and obtain contractor pricing. Once confirmed, bid only within the maximum-bid position supported by the evidence.
About this analysis
Opportunity Scores, Value Gap estimates and development observations are indicative, not a formal valuation or professional advice. Verify property details, costs and any required permissions independently before making a decision.