5 bed HMO, Vulcans Lane, Workington CA14 2NX
Project:
Background & Deal Structure:
A 3 bedroom end-terraced property requiring modernisation, ideally suited for conversion into a 5 bedroom house of multiple occupancy (HMO) and leased to a Registered Provider on a long-term commercial lease.
The Registered Provider (RP) have expressed interest in this property, and it has passed their postcode checks.
The RP have offered a 10 year lease on this unit, following renovation and having onboarded the property..
Area / Location
Area
Located close to the centre of town, with an abundance of local amenities and facilities, a short distance to the train station and motorway networks providing access to Carlisle and beyond, Workington is well located.
The property is perfectly positioned for access into the town, is in close proximity to many local, national and global employers, and benefits from a variety of local recreation spots including local golf courses, parks and forests.
Scope of Work:
Rip out, door casings, kitchen, bathroom fittings etc as required, carpets as required.
Install smoke & heat detection, interlinked smoke detection to all rooms and corridors and 1 heat detector in the kitchen area. Full rewire of electrical sockets, lights and extraction, new consumer unit EICR test and two EML fittings Kitchen and Bathrooms to have Bulk Head lights. All bedrooms to have 1 no USB Socket and minimum 2 double sockets Communal area to have 1 USB Socket and minimum if 3 double sockets in total Kitchen to have isolation switch for washing machine. Bathrooms x 2 to have extraction fans.
Supply and fit new fully compliant FD30 fire door casings, fully compliant FD30 fire doors, intumescent fire strips, architraves, fire door closer, push plate to the communal door, fully compliant door lock suitable to specific fire door, doorstop to all rooms.
Relocate the Kitchen into the proposed lounge space creating an open Kitchen/Lounge area.
Make good former Kitchen space and use as a laundry room.
Carry out all associated joinery works throughout the property to make good existing woodwork, skirting boards etc.
Install front and back door c/w thumbturn locks.
Remove former shop door on main road side and close off, insulate and seal with external and internal finish – material tbc
All windows to have restrictors installed + handles and locks to be serviced as standard
Stairs case railings to be boarded and extended if required to meet provider spec
Install new Combi boiler and Gas Safe Cert.
Fire-board under stairs and to any supply cupboards etc.
New flooring where required, look to save part of existing floors where possible.
Option for full redecoration of all walls, ceilings and woodwork in white throughout the whole house, current decor in decent condition.
Install WC/Sink/ and splashbacks to existing shower room located next to current bathroom suite.
Make good rear garden of any trip hazards and jet spray clean down.
Video Walkthrough:
UK Financials:
Acquisition Costs
| Purchase Price Sale agreed | £208.000 |
| Renovation Refurbishment & Conversion Costs | £0 |
| Project Management @10% of cost of works | £0 |
| Architect/Planning Technical drawings for approval by HMO officer | £0 |
| Building Control UK | £0 |
| Furniture Furnishing to provider’s requirements | £0 |
| SDLT:Resi Stamp Duty Land Tax | £6,240 |
| Survey RICS Level 2 Report | £0 |
| Legals Conveyancing & transaction fees & disbursements | 2,500 |
| Insurance | 400 |
| Sourcing Sourcing Fee | 0 |
| Equity Invested Total acquisition costs excluding finance | £217,140 |
Rental Income (Term: 10-Year Lease)
| Rooms | 5 |
| Average Rate/Wk | £68.00 |
| Gross Rent p.a. Negotiated rate for area | £17,680 |
| Operational Expenses p.a. @0.00% | £0 |
| Management p.a. 0.50% | £0 |
| Net Cash Flow p.a. Pre-tax income | £12,280 |
| Rent/m (rm rate reverse calc) | £1473.33 |
| Term (years) | 10 |
Returns
| Equity Invested | £217,140 |
| Net Cash Flow PA Private finance investor partner net income | £17,680 |
| Contract Lifetime Net Cash Flow Private finance investor partner net income over the life of lease term (10 years) | £176,800 |
Rental Income (Term: 10-Year Lease)
Yield
Cash-on-Cash UK
International Financials:
Acquisition Costs
| Purchase Price Sale agreed | £208.000 |
| Renovation Refurbishment & Conversion Costs | £0 |
| Project Management @10% of cost of works | £0 |
| Architect/Planning Technical drawings for approval by HMO officer | £0 |
| Building Control | £0 INT |
| Furniture Furnishing to provider’s requirements | £0 |
| SDLT:Resi Stamp Duty Land Tax | £10,400 |
| Survey RICS Level 2 report | £0 |
| Legals Conveyancing & transaction fees & disbursements | £2,500 |
| Insurance | £400 |
| Sourcing Sourcing Fee | £0 |
| Equity Invested Total acquisition costs excluding finance | £221,300 |
Rental Income (Term: 10-Year Lease)
| Rooms | 5 |
| Average Rate/Wk | £68.00 |
| Gross Rent p.a. Negotiated rate for area | £17,680 |
| Operational Expenses p.a. @0.00% | £0 |
| Management p.a. 0.50% | £0 |
| Net Cash Flow p.a. Pre-tax income | £17,680 |
Returns
| Equity Invested | £22,300 |
| Net Cash Flow PA Private finance investor partner net income | £17,680 |
| Contract Lifetime Net Cash Flow Private finance investor partner net income over the life of lease term (10 years) | £176,800 |
Rental Income (Term: 10-Year Lease)
Yield
Cash-on-Cash UK
Comparables
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.
Please fill in your information below if you would like to to discuss this opportunity in more detail…
"*" indicates required fields