3 bed family-let
Ludford Street, Grimsby DN32 0NT
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 has passed their checks.
The RP have offered a 5 year lease on this unit, following renovation and having onboarded the property.
Location
Images
Floorplans
Video Walkthrough
Project
Scope of Works
Remove all carpets.
Apply a small amount of Damp Proof Course (DPC) in the dining room.
Install new consumer unit.
Remove kitchen units and floor tiles.
Remove bathroom panel.
Remove sink from the back bedroom.
Clear any rubbish.
Replace some floorboards in the main bedroom.
Install new skirting in the dining room and main bedroom.
Install gas meter boxing in the downstairs living room.
Remove radiator from the chimney in the downstairs living room.
Remove wallpaper where there is rising damp.
Install an extractor fan in the bathroom.
Replace the old radiator in the bathroom.
Install an extractor fan in the kitchen.
Replace the consumer unit under the stairs and box it in.
Install new kitchen units.
Tile the kitchen.
Install new flooring in the kitchen.
Paint and decorate the kitchen.
Install a shower screen in the bathroom.
Install new flooring in the bathroom.
Paint and decorate the bathroom.
Paint and decorate the entire house.
Install flooring and carpets throughout the house.
Financials
Acquisition Costs
| Purchase Price Sale agreed | £57,000 |
| Renovation Refurbishment & Conversion Costs Estimate | £17,000 |
| 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 | £1,710 UK £2,850 INT |
| Survey RICS Level 2 report | £500 |
| Legals Conveyancing & transaction fees & disbursements | £1,500 |
| Sourcing Sourcing Fee | £5,000 |
| Capital In Total acquisition costs | £84,210 |
Optional Extras
| Project Management Coordinating contract teams | £2,890 |
| Lease Setup Lease negotiations & contract admin with Registered Provider | £800 |
Post-Works Refinance
| Gross Development Value Bricks & mortar valuation | £78,000 |
| Uplift Between GDV and original purchase price | £21,000 |
| 1st Charge Lending @75.00% of GDV – recycling funds onto next opportunity | £58,500 |
| Capital Left In Capital remaining in equity post-refinance using mortgage lending | £29,400 |
Registered Provider 10 Year Lease
| Gross Rent p.a. Negotiated rate for area | £8,340 |
| Mortgage p.a. @6.00% lending @75%LTV | £3,510 |
| Operational Expenses p.a. @0.00% | £0 |
| Management p.a. 0.00% | £0 |
| Net Cash Flow p.a. Pre-tax income | £4,830 |
Capital Growth
Capital Gain
| Capital Value @ Year 10 Year 10 value assumed conservative 3.5% annual growth | £110,027 |
| Mortgage Lending 1st Charge lending redemption | £58,500 |
| Equity Investment Capital Capital returned to equity investor | £25,710 |
| Capital Gain @ Year 10 Cap.value less 1st charge lending & equity investor’s capital | £25,817 |
Investor Returns
Income & Return
| Net Cash Flow PA Annual net income after costs | £4,830 |
| Total Net Lifetime Cash Flow Net income over 10 years | £48,298 |
| Total Lifetime Return on Capital Gain + Total Income (calculated @Year 10) | £74,114 |
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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