6 bed HMO
Blakiston Street, Fleetwood FY7 6BA
Project
Background
& Deal Structure
A 3-bedroom terraced property ideally suited for conversion into a 6 bedroom house of multiple occupancy (HMO) and leased to professional tenants.
Demand exists from both the professional HMO rental market and also the student market in the local area.
Deal requires cash or bridge for the front-end purchase due to the scope of works.
Vendor requires an upfront 3% reservation fee, deductible from the purchase price and an Exchange of Contracts in 8 weeks.
Location
Images
Floorplans
Project
Scope of Works
Scope of works with internal reconfiguration, including…
Full rip out (including kitchen and bathroom)
Create four doorway openings in brickwork
Remove 4m of existing stud work
Install staircase for dormer in the loft
Install dormer including new window
Install 21m of new stud walling to create new rooms
Add new circuits where required and replace consumer unit
First fix for six new en-suites
First fix for new radiators
Plasterboard and skim new studwork
Install new kitchen
Install six new en-suites
Install new radiators
Install new boiler
Install 13 new fire doors and required mouldings
Paint throughout
Install smoke alarms throughout
2nd Fix all new electrical
Fit carpets and flooring throughout
Financials
Acquisition Costs
| Purchase Price Sale agreed | £131,000 |
| Renovation Refurbishment & Conversion Costs | £100,000 |
| Architect Budget for plans drafting plans and submission to local authority | £700 |
| Furniture Furnishing to provider’s requirements | £700 |
| SDLT Stamp Duty Land Tax | £6,550 UK £9,170 INT |
| Survey RICS Level 2 report | £600 |
| Legals Conveyancing & transaction fees & disbursements | £2,500 |
| Sourcing Sourcing Fee | £9,525 |
| Capital In Total acquisition costs | £267,125 |
Optional Extras
| Project Management Coordinating contract teams | £10,000 |
Post-Works Refinance
| Gross Development Value Bricks & mortar valuation | £316,800 |
| Uplift Between GDV and original purchase price | £185,800 |
| 1st Charge Lending @75.00% of GDV – recycling funds onto next opportunity | £237,600 |
| Capital Left In Capital remaining in equity post-refinance using mortgage lending | £29,525 |
Professional HMO Rental Income
| Gross Rent p.a. Negotiated rate for area | £39,600 |
| Mortgage p.a. @6.00% lending @75%LTV | £14,256 |
| Operational Expenses p.a. @25.00% | £9,900 |
| Management p.a. @15.00% | £5,940 |
| Net Cash Flow p.a. Pre-tax income | £9,504 |
Capital Growth
Capital Gain
| Capital Value @ Year 10 Year 10 value assumed conservative 3.5% annual growth | £446,878 |
| Mortgage Lending 1st Charge lending redemption | £237,600 |
| Equity Investment Capital Capital returned to equity investor | £29,525 |
| Capital Gain @ Year 10 Cap.value less 1st charge lending & equity investor’s capital | £179,753 |
Investor Returns
Income & Return
| Net Cash Flow PA Annual net income after costs | £9,504 |
| Total Net Lifetime Cash Flow Net income over life of lease term | £95,040 |
| Total Lifetime Return on Capital Gain + Total Income (calculated @Year 10) | £274,793 |
Comparables
Availability
Secure Your Next Deal Today…
This deal is available under our standard terms with a 25% downpayment of the Sourcing Fee paid to secure the opportunity, deductible from the final balance due at Exchange of contracts.
Please fill in your information below if you would like to to discuss this opportunity in more detail…