Wellington Street, Chorley

Completed project | Chorley

A tenanted mid-terrace property with existing rental income, modest refurbishment assumptions and a guide price below open-market value. The case demonstrates how a smaller income asset can be positioned around rent, condition, discount and practical ownership route.

Primary result

7% below OMV

Yield

6.46% gross yield

Delivery scale

2-bed mid-terrace

Route / strategy

Tenanted assets

Story

The situation

The property was already tenanted and producing £700 per month, equivalent to £8,400 per annum. It was recorded in average condition, with OMV at £140,000, GDV at £145,000 and a £5,000 refurbishment estimate.

The problem

The opportunity needed to balance the existing income against the condition and refurbishment allowance. It also needed a buyer-facing price that showed a discount to OMV without forcing the yield into an unrealistic range.

What was done

Root Home positioned the property at a public guide of £130,000, using the existing £8,400 annual rent to show a buyer-facing gross yield of around 6.46%. This kept the opportunity below OMV while retaining a sensible income-led return profile.

Project media

Delivery and works

Scope

The property was not positioned as a major value-add project. A £5,000 refurbishment estimate was factored into the assessment, with the main buyer consideration remaining the income already in place.

Execution

The opportunity was reviewed against tenant status, monthly rent, OMV/GDV evidence and refurbishment allowance. The buyer-facing guide was set to preserve a visible discount to OMV while keeping the yield within a practical range.

Stabilisation

The property was already tenanted at £700 per month. Any improvement route was secondary to the existing income and ownership case.

Financial outcome

Total cost

£130,000 guide

Total capital deployed.

End value

£140,000 OMV

Delivered value.

Profit or uplift

7% below OMV

Primary project result.

Yield

6.46% gross yield

Reported where relevant.

Programme

Income in place

Total programme.

Units delivered

2-bed mid-terrace

Output delivered.

Result and impact

Operational result

The property could be shown as a compact tenanted asset with income in place, a modest works allowance and a clear discount to OMV for buyers seeking practical residential stock.

Who benefits

A buyer seeking smaller income-producing stock benefits from a clear rent position, modest works context and pricing below OMV.

Why it matters

This case shows how tenanted stock can remain buyer-relevant even where the discount is modest, provided the rent, condition and ownership route are clearly framed.

Lessons and strategic value

– The refurbishment allowance should be acknowledged without turning the asset into a value-add case.
– Existing income can support a smaller asset where the price remains disciplined.
– Discount-to-OMV does not need to be extreme to be commercially useful.
– Clear condition context helps buyers assess practical ownership risk.

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