Hearsall_12
Headline Figures
Asking price£225,000
Purchase price£230,000
Gross Rents (PCM)£3,300
Estimated Net Profit (PCM)£1,115

Taking into consideration void periods, management and tenancy set-up costs, utilities including Council Tax and maintenance.

Hearsall Lane

Chapelfields, Coventry CV5 6HJ

Sale completed: January 2020

At the time of purchase, the property was a tired terraced House of Multiple Occupation (HMO), spread over three floors. There were 6 bedrooms with two shared shower rooms. Accommodation was dated and in poor condition.

Conversion work was undertaken to create six bedrooms, all of which are en-suite. The footprint of the kitchen remained the same but was completely refitted and modernised into a large kitchen dining space. One of the shower rooms was converted into a utility room for the use of all tenants.

Return on Investment Calculations
Initial Deposit (20%)£46,000
Stamp Duty£9,000
Solicitors£1,250
Refurbishment (including HMO Licence)£83,073
Total Spend£144,291
Refinance After Refurbishment
New Value (Estimated) Spring (2020)£329,687
New Mortgage Lend (80% LTV)£
Initial Mortgage Lend (80% LTV)£
Equity Release£79,750
Money Left In Deal£
Net Annual Income£13,375
Return on Investment20.7%

I have been dealing with Anthony at Homemaker Properties for the last year. I have found the service to be excellent and prompt at all times. Based on my experience I will happily recommend the company to anyone who requires the services offered.

J. Choongh, Wolverhampton (Dec 2019)