With the insight on planning, we demolished the double garage at the side, built double-storey side extension and single-storey rear extension and also converted the loft space. As a result, internal floor area increased from 100 Sqm. to 300 Sqm.
Work done: Double-Storey side extension, loft conversion and single- storey side extension.
Purchase Price: £540,000
Purchase Date: May 2014
Refurbishment Cost: £250,000
Post Work Valuation: £950,000
A strategy that works in London. With the property price so high, single buy to let landlord would struggle to put out the fund from your existing portfolio through the normal buy to let mortgage. This strategy can solve the problem.
Converted to a 6 Bedroom and 5 Bathroom HMO
Purchase Price: £340,000
Purchase Date: May 2017
Post Conversion Valuation: £550,000
Net Income per year before tax: £31,200
Buy and hold generally works in the long term no matter what in the equity market or property market. With the average capital appreciation in UK being around 9% in the last 20 years, 30 years and 60 years, you can achieve a lot by just buy and hold.
Purchase Price: £510,000
Purchase Date: Dec 2012
Current Valuation: £950,000
Return of Investment: Indefinite, no money left in the deal
Net Rental per year before tax: £24,000
A standard 3 bed end of terrace converted into 6 bedroom HMO.
Purchase Price: £319,995
Refurbishment Cost: £120,000
Post Work Valuation: £525,000 to 550,000
Gross Income per year Before Tax: £33,600
Return of Investment: 20%
We carried out an internal refurbishment and conversion, from 3 bed to a 5 bed HMO.
Purchase Price: £385,000
Refurbishment Cost: £45,000
House value after work: £450,000
Refurbishment Cost: £45,000
Gross Yield 8%
Our 5th HMO has been fully refurbished and is now being let.
We buy anything where the figures add up. With our experience, we find free hold houses are most attractive investments for number of reasons. Ø You never pay management fee and ground rent. Ø We buy houses with development potential. Once done up, the value of the house will increase regardless the market situation, which enable us to pull out most of the refurbishment cost.
Our architect can help with this, who has done successfully application on large extension deal. We will apply for planning permission if that is part of the strategies that we offer you. But in the most cases, we will only do permitted development which is more economically efficient.
Depending on what strategy you would like to have, if it is our portfolio builder strategy, once you agree with us where to invest, what to buy, it will take 4 weeks to 8 weeks to allow new property coming to the market.
For every deal, we provide investor with a comprehensive report that contains a combination of the following data:
- Property details and history
- Site and floor plans
- Detailed overview of area
- Its suitability to rent to professionals – including facilities, transport links, schools - Capital growth rates
- Likely Purchase price range
- Market value and comparable sales of the local area
- Detailed analysis of local comparable and local average rental income, including previous deals in the local area or similar properties
- Historical planning application on the area
- Council HMO licensing policy
- Economic forecast of the location zeroing in on regeneration/investment particulars
The market is always changing, we will provide you with our broker's analysis to give you the best outcome through refinance. At this point in time depending on the level of refurbishment, we may refinance it first within 6-9 months’ time then refinance it again 2 years later.
Please speak to our team.