Success Stories
Surbiton, South West London
4 bedroom End Terrace conversion to HMO
Our most recent investment included comprehensive analysis of market, competition and target client dynamics to determine a successful proactive acquisition, development and marketing strategy.
Asset was acquired 19% below market value, development and planning enhancements delivered unprecedented returns in a highly challenging and regulated market; c.60% year one gross profits, c.35% capital appreciation with Investors achieving agreed returns.
Works completed:
Entire building brought back to brick, new electrics, new central heating system, tanks, boiler and rads, new doors and windows internal and external
Brought to market:
£895,000
Discount negotiated:
£170,000 (19%)
Purchase Price:
£725,000
Total investment costs:
£186,386
Purchase costs:
£59,335
- SDLT £48,000
- Legal, Searches, Lang Reg, etc £1,572
- Mortgage £1,633
- Survey £680
- Planning (Fees, Consultants, etc) £5,578
- Building Control £672
- HMO licencing £1,880
Refurbishment costs:
£127,051
- Contractor (materials & labour) £87,494
- Doors, windows, kitchen, en-suites, white goods, fixtures, fittings, etc £39,557
Current Market Price:
£1,100,000
Capital Appreciation:
£375,000
Equity:
£275,000
Cashflow:
- Rental income: £5,700 pcm / £68,400 pa
- Mortgage: £2,164 pcm
- Running costs: £661 pcm
Monthly profit:
£2,875 pcm /
£34,500 pa
Yield Pre & Post Refinance:
9.4% / 5.7%
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