3 bed family-let
Heneage Road, Grimsby DN32 9JJ
Project
Background
& Deal Structure
A 3 bedroom terraced property requiring ideally suited as a family-let and leased to a Registered Provider of social housing on a long-term lease.
The Registered Provider (RP) Target Housing have expressed interest in this property, and it is undergoing their checks.
Once approved, the RP will offer a 5 year lease on this unit, following renovation and having onboarded the property.
Location
Images
Floorplans
Video Walkthrough
Project
Scope of Works
Primarily cosmetic with some minor works, including…
Damp patches corner the hallway and back bedroom
Potential damp in the landing ceiling
Clear the gutters
DPC in certain areas of the kitchen
Remove the outside plastic roof. May be causing damp in the walls
Loft hatch needs installing
Clean the carpets
Some carpets will need ripping out if damaged by DPC
Box in pipes
Certificates for gas and electric
Financials
Acquisition Costs
| Purchase Price Sale agreed | £70,000 |
| Renovation Refurbishment & Conversion Costs Estimate | £8,000 |
| Architect Budget for plans drafting plans and submission to local authority | £0 |
| Furniture Furnishing to provider’s requirements | £1,500 |
| SDLT Stamp Duty Land Tax | £2,100 UK £3,500 INT |
| Survey RICS Level 2 report | £500 |
| Legals Conveyancing & transaction fees & disbursements | £1,500 |
| Sourcing Sourcing Fee | £5,000 |
| Capital In Total acquisition costs | £88,600 |
Optional Extras
| Project Management Coordinating contract teams | £2,000 |
| Lease Setup Lease negotiations & contract admin with Registered Provider | £800 |
Post-Works Refinance
| Gross Development Value Bricks & mortar valuation | £85,000 |
| Uplift Between GDV and original purchase price | £15,000 |
| 1st Charge Lending @75.00% of GDV – recycling funds onto next opportunity | £63,750 |
| Capital Left In Capital remaining in equity post-refinance using mortgage lending | £24,850 |
Registered Provider 10 Year Lease
| Gross Rent p.a. Negotiated rate for area | £8,400 |
| Mortgage p.a. @6.00% lending @75%LTV | £3,825 |
| Operational Expenses p.a. @0.00% | £0 |
| Management p.a. 0.00% | £0 |
| Net Cash Flow p.a. Pre-tax income | £4,575 |
Capital Growth
Capital Gain
| Capital Value @ Year 10 Year 10 value assumed conservative 3.5% annual growth | £119,901 |
| Mortgage Lending 1st Charge lending redemption | £63,750 |
| Equity Investment Capital Capital returned to equity investor | £24,850 |
| Capital Gain @ Year 10 Cap.value less 1st charge lending & equity investor’s capital | £31,301 |
Investor Returns
Income & Return
| Net Cash Flow PA Annual net income after costs | £4,575 |
| Total Net Lifetime Cash Flow Net income over 10 years | £45,750 |
| Total Lifetime Return on Capital Gain + Total Income (calculated @Year 10) | £77,051 |
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.
Please fill in your information below if you would like to to discuss this opportunity in more detail…