4 bed family-let
Dundas Street, Queensferry CH5 1SZ
Project
Background
& Deal Structure
A 3-bedroom terraced property requiring ideally suited for conversion into a 4 bedroom family-let and leased to a Registered Provider on a long-term commercial lease.
The Registered Provider (RP) Clearsprings 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.
Deal has been negotiated as a CASH purchase at the front end because the buyer is about to be repossessed and needs security of sale – a proof of funds for cash will be required to secure [however a bridge could be used to complete the purchase once in legals].
Location
Images
Floorplans
Project
Scope of Works
Primarily cosmetic, including…
– Rip-out
– Kitchen
– Bathroom
– Gas Central Heating
– Electrics
– Flooring
– Decoration
– Gardens
Financials
Acquisition Costs
| Purchase Price Sale agreed | £110,000 |
| Renovation Refurbishment & Conversion Costs Estimate | £17,500 |
| Architect Budget for plans drafting plans and submission to local authority | £0 |
| Furniture Furnishing to provider’s requirements | £3,000 |
| SDLT Stamp Duty Land Tax | £3,300 UK £5,500 INT |
| Survey RICS Level 2 report | £500 |
| Legals Conveyancing & transaction fees & disbursements | £1,500 |
| Sourcing Sourcing Fee | £6,000 |
| Capital In Total acquisition costs | £141,800 |
Optional Extras
| Project Management @12% of cost of works | £2,100 |
| Lease Setup Lease negotiations & contract admin with Registered Provider | £800 |
Post-Works Refinance
| Gross Development Value Bricks & mortar valuation | £140,000 |
| Uplift Between GDV and original purchase price | £30,000 |
| 1st Charge Lending @75.00% of GDV – recycling funds onto next opportunity | £105,000 |
| Capital Left In Capital remaining in equity post-refinance using mortgage lending | £36,800 |
Registered Provider 10 Year Lease
| Gross Rent p.a. Negotiated rate for area | £13,200 |
| Mortgage p.a. @6.00% lending @75%LTV | £6,300 |
| Operational Expenses p.a. @0.00% | £0 |
| Management p.a. 0.00% | £0 |
| Net Cash Flow p.a. Pre-tax income | £6,834 |
Capital Growth
Capital Gain
| Capital Value @ Year 10 Year 10 value assumed conservative 3.5% annual growth | £197,484 |
| Mortgage Lending 1st Charge lending redemption | £105,000 |
| Equity Investment Capital Capital returned to equity investor | £36,800 |
| Capital Gain @ Year 10 Cap.value less 1st charge lending & equity investor’s capital | £55,684 |
Investor Returns
Income & Return
| Net Cash Flow PA Annual net income after costs | £6,834 |
| Total Net Lifetime Cash Flow Net income over life of lease term | £68,337 |
| Total Lifetime Return on Capital Gain + Total Income (calculated @Year 10) | £124,021 |
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…