Windle Hall Drive, St. Helens WA10 6PY

4 bed HMO

Windle Hall Drive, St. Helens WA10 6PY

Project

Background
& Deal Structure

A 4 bedroom terraced property requiring modernisation, ideally suited for conversion into a 4 bedroom house of multiple occupancy (HMO) and leased to a Registered Provider on a long-term commercial lease.

The Registered Provider (RP) 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.

Location

Area

Located close to the centre of town, with an abundance of local amenities and facilities, a short distance to the train station and motorway networks providing access to Liverpool, Manchester and beyond, St. Helens is well located.

The property is perfectly positioned for access into the town, is in close proximity to many local, national and global employers, and benefits from a variety of local recreation spots including local golf courses, parks and forests.

Images

Floorplan

Proposed Floorplan

Project

Scope of Works

Rip out, door casings, kitchen, bathroom fittings etc as required, carpets as required.

Install smoke & heat detection, interlinked smoke detection to all rooms and corridors and 1 heat detector in the kitchen area. Full rewire of electrical sockets, lights and extraction, new consumer unit EICR test and two EML fittings Kitchen and Bathrooms to have Bulk Head lights. All bedrooms to have 1 no USB Socket and minimum 2 double sockets Communal area to have 1 USB Socket and minimum if 3 double sockets in total Kitchen to have isolation switch for washing machine. Bathrooms x 2 to have extraction fans.

Supply and fit new fully compliant FD30 fire door casings, fully compliant FD30 fire doors, intumescent fire strips, architraves, fire door closer, push plate to the communal door, fully compliant door lock suitable to specific fire door, doorstop to all rooms.

Reuse kitchen carcass. Budget to replace door front and worktops.

Reuse bathroom with budget to replace bath and improve splashback areas.

Carry out all associated joinery works throughout the property to make good existing woodwork, skirting boards etc.

Install front and back door c/w thumbturn locks.

Install new Combi boiler and Gas Safe Cert.

Fire-board under stairs and to any supply cupboards etc.

New flooring where required, look to save part of existing floors where possible.

Option for full redecoration of all walls, ceilings and woodwork in white throughout the whole house.

Financials

Acquisition Costs

Purchase Price
Sale agreed
£105,000
Renovation
Refurbishment & Conversion Costs
£34,500
Architect
Budget for plans drafting plans and submission to local authority
£650
Furniture
Furnishing to provider’s requirements
£3,000
SDLT
Stamp Duty Land Tax
£3,150 UK
£5,250 INT
Survey
RICS Level 2 report
£420
Legals
Conveyancing & transaction fees & disbursements
£1,500
Sourcing
Sourcing Fee
£5,000
Capital In
Total acquisition costs
£153,220

Optional Extras

Project Management
@10% of cost of works
£3,450
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
£35,000
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
£48,220

Registered Provider 10 Year Lease

Gross Rent p.a.
Negotiated rate for area
£14,144
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
£7,844

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
£48,220
Capital Gain @ Year 10
Cap.value less 1st charge lending & equity investor’s capital
£44,264

Investor Returns

Income & Return

Net Cash Flow PA
Annual net income after costs
£7,844
Total Net Lifetime Cash Flow
Net income over life of lease term
£78,440
Total Lifetime Return on Capital
Gain + Total Income (calculated @Year 10)
£122,704

Comparables

Availability

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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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