| 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) | £ |
| New Mortgage Lend (80% LTV) | £264,000 |
| Initial Mortgage Lend (80% LTV) | £184,000 |
| Equity Release | £80,000 |
| Money Left In Deal | £64,291 |
| Net Annual Income | £13,375 |
| Return on Investment | 20.8% |