Block of 4 x1 bed flats
Bold Street, Fleetwood FY7 6HL
Project
Background
& Deal Structure
A large end-terraced property which has been converted into 4 one-bedroom family-let apartments/flats and leased to a Registered Provider of social housing on a long-term lease.
The Registered Provider (RP) Serco expressed interest in this property, and the property passed their postcode checks.
The property has been converted into 4 one bedroom apartments and completed to a high standard.
Serco have now entered into 10 year leases on all 4 units in this property, with the earliest starting November 2023.
The property is being sold on a freehold basis with the benefit of all leases in place.
Location
Images
Floorplans
Video Walkthroughs
Project
Scope of Works
None
Financials
Acquisition Costs
| Purchase Price Sale agreed | £210,000 |
| Renovation Refurbishment & Conversion Costs | £0 |
| Architect Budget for plans drafting plans and submission to local authority | £0 |
| Furniture Furnishing to provider’s requirements | £0 |
| SDLT Stamp Duty Land Tax | £6,300 UK £10,500 INT |
| Survey RICS Level 2 report | £2,000 |
| Legals Conveyancing & transaction fees & disbursements | £2,500 |
| Insurance Buildings Insurance | £400 |
| Sourcing Sourcing Fee | £7,750 |
| Capital In Total acquisition costs | £228,950 |
Optional Extras
| Project Management Coordinating contract teams | £0 |
| Lease Setup Lease negotiations & contract admin with Registered Provider | £1,600 |
Post-Works Refinance
| Gross Development Value Bricks & mortar valuation | £225,000 |
| Uplift Between GDV and original purchase price | £15,000 |
| 1st Charge Lending @75.00% of GDV – recycling funds onto next opportunity | £168,750 |
| Capital Left In Capital remaining in equity post-refinance using mortgage lending | £60,200 |
Registered Provider 10 Year Lease
| Gross Rent p.a. Negotiated rate for area | £21,600 |
| Mortgage p.a. @6.00% lending @75%LTV | £10,125 |
| Operational Expenses p.a. @0.00% | £0 |
| Management p.a. 0.00% | £0 |
| Net Cash Flow p.a. Pre-tax income | £11,475 |
Capital Growth
Capital Gain
| Capital Value @ Year 10 Year 10 value assumed conservative 3.5% annual growth | £317,385 |
| Mortgage Lending 1st Charge lending redemption | £168,750 |
| Equity Investment Capital Capital returned to equity investor | £60,200 |
| Capital Gain @ Year 10 Cap.value less 1st charge lending & equity investor’s capital | £88,435 |
Investor Returns
Income & Return
| Net Cash Flow PA Annual net income after costs | £11,475 |
| Total Net Lifetime Cash Flow Net income over life of lease term | £114,750 |
| Total Lifetime Return on Capital Gain + Total Income (calculated @Year 10) | £203,185 |
Comparables
Availability
Secure Your Next Deal Today…
This deal is available under our standard terms with a 25% downpayment of the Sourcing Fee paid to secure the opportunity, deductible from the final balance due at Exchange of contracts.
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