Recent Property Deal

We sourced and refurbished this property before managing it for our client who was looking for a greater return on their savings than what they were getting from their bank.

Vernon Place Living Room

Project Summary

The property was bought directly through an estate agent with who we have a really great relationship.

This property is all about its location - it's based on one of our target streets which is close to a hospital, has great transport links and proximity to the motorway.

The street is extremely popular as it is set in a private cul de sac, so ideal for residential lettings. The property included good sized gardens to the front and rear which increases its rental demand.   

Financials

Cash Invested

£28,945

Purchase price: £105,000

Mortgage: £78,750

Deposit: £26,250

Stamp duty: £3,150

Legal fees: £750

Refurb costs: £7,800

Tenant finding cost: £250

Additional costs: £7,995

Initial cash invested: £46,195

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Post refurbishment value

Re-valuation: £128,000

Mortgage: £96,000

Cash left in the deal: £28,945

 

Annual Net Annual Profit

£3,450

Gross monthly rental income: £675

Letting management fee @10%: £67.50pm 

Mortgage @4%: £320

Monthly net income: £287.50

Annual Return on Investment

12%

Gross rental yield: 6.33%

Net rental yield 5.70%

Before

LQ4A4742
LQ4A4703
LQ4A4725
LQ4A4710

After

The refurbishment needed was a new kitchen and bathroom with general decorating throughout. It already had great features in place with a sunroom/conservatory, garden shed and wood-burning stove.   

The refurbishment was turned around in 4 weeks, and the first couple to view the property took it on a long term rental. A working mature couple where the wife worked at the hospital and the husband looking for his garden and shed. 

Front of Vernon Way
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Kitchen Vernon Way (1)

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