2 bed family-let
Lime Street, Grimsby DN31 2HJ
Project
Background
& Deal Structure
A 2 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
Video Walkthrough
Project
Scope of Works
Primarily cosmetic with some minor works, including…
Financials
Acquisition Costs
| Purchase Price Sale agreed | £48,000 |
| Renovation Refurbishment & Conversion Costs Estimate | £14,000 |
| 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 | £1,440 UK £2,400 INT |
| Survey RICS Level 2 report | £500 |
| Legals Conveyancing & transaction fees & disbursements | £2,500 |
| Sourcing Sourcing Fee | £5,000 |
| Capital In Total acquisition costs | £72,940 |
Optional Extras
| Project Management Coordinating contract teams | £2,800 |
| Lease Setup Lease negotiations & contract admin with Registered Provider | £800 |
Post-Works Refinance
| Gross Development Value Bricks & mortar valuation | £70,000 |
| Uplift Between GDV and original purchase price | £22,000 |
| 1st Charge Lending @75.00% of GDV – recycling funds onto next opportunity | £52,500 |
| Capital Left In Capital remaining in equity post-refinance using mortgage lending | £24,040 |
Registered Provider Lease
| Gross Rent p.a. Negotiated rate for area | £7,800 |
| Mortgage p.a. @6.00% lending @75%LTV | £3,150 |
| Operational Expenses p.a. @0.00% | £0 |
| Management p.a. 0.00% | £0 |
| Net Cash Flow p.a. Pre-tax income | £4,650 |
Capital Growth
Capital Gain
| Capital Value @ Year 10 Year 10 value assumed conservative 3.5% annual growth | £98,742 |
| Mortgage Lending 1st Charge lending redemption | £52,500 |
| Equity Investment Capital Capital returned to equity investor | £20,440 |
| Capital Gain @ Year 10 Cap.value less 1st charge lending & equity investor’s capital | £25,802 |
Investor Returns
Income & Return
| Net Cash Flow PA Annual net income after costs | £4,650 |
| Total Net Lifetime Cash Flow Net income over 10 years | £46,500 |
| Total Lifetime Return on Capital Gain + Total Income (calculated @Year 10) | £72,302 |
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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