17 bed HMO
High Street, Runcorn WA7 1JH
Project
Background
& Deal Structure
A large commercial building, recently trading as a public house, with an extensive ground floor and beer garden, benefiting from planning for conversion into a 17 bedroom house of multiple occupancy (HMO).
Their is scope to rent either to the private sector or to a social housing provider.
Plans also exist for conversion into a 24 bed HMO, however would require a new Planning application submission.
Location
Images
Floorplans – Existing
Floorplans – Proposed 17 Bed (Planning approved)
Floorplan – Proposed 24 Bed (would require Planning application resubmission)
Project
Scope of Works
Estimated costs include for all prelims, management of works, building alterations to include additional external windows and door openings and a full turnkey package on scope of works from strip out to builders works, M&E systems including smoke detection and fire alarm panel, relocation of services, kitchens, all joinery including compatible fire doors and furniture, plastering, plumbing, decoration, flooring etc.
Estimated costs have been supplied from our main contractor (who has visually inspected the property) at £231k and from Pro Quant’s team of estimators (who have not inspected, and assumed a worst-case scenario) at £390k.
Searches have already been completed and are available to expedite the purchase.
Financials
Acquisition Costs
| Purchase Price Sale agreed | £355,000 |
| Renovation Refurbishment & Conversion [Estimates from £13,588-£22,941/room | £230,990 to £390,000 |
| Architect Budget for plans drafting plans and submission to local authority | £650 |
| Interiors Furniture & soft furnishings | £25,500 |
| SDLT Stamp Duty Land Tax | £7,250 |
| Survey Commercial survey | £4,000 |
| Legals Conveyancing & transaction fees & disbursements | £2,500 |
Income
| Gross Rent p.a. 17 rooms @£125/week | £110,500 |
| Operational Expenses p.a. @30.00% | £33,150 |
| Management p.a. 15.00% | £16,575 |
| Cash Flow p.a. excluding Finance Costs | £60,775 |
Availability
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