6–7 Bed HMO Refurb Opp

6–7-Bed HMO Refurb Opportunity | Northamptonshire

• 5-bedroom period end-of-terrace property
• Approximately 230 m²
• Freehold
• The property requires modernisation and refurbishment throughout, providing an opportunity to add value and reposition the property for the professional room-rental market
• The existing accommodation comprises five large double bedrooms, two reception rooms and a substantial kitchen/breakfast area, providing a potentially suitable layout for conversion into a 6–7-bedroom HMO
• The existing bedrooms and reception rooms are generously proportioned, allowing scope to create good-sized professional letting rooms while retaining communal kitchen/living accommodation
• Walking distance town centre and railway station
• Not currently within an HMO Article 4 area (subject to purchaser verification)

Financials

• Target Purchase Price: £275,000
• Estimated Purchase Costs: £23,350
• Purchase costs include approximately £18,000 SDLT, £3,000 sourcing fee, £2,000 legal costs and £350 insurance.
• Estimated HMO Refurbishment/Conversion Budget: £93,500
• Estimated Rental Income PCM: £4,025
• Estimated Rental Income PA: £48,300
• Indicative Mortgage Payment: £1,406 PCM, based on 75% LTV and an assumed 5% interest rate.
• Estimated Monthly Net Cash Flow: £2,054
• Estimated Annual Net Cash Flow: £24,645
• Estimated ROCE: 39%
• Estimated Gross Yield: 11%
• Estimated Cost to Refurbish: £93,500
• Estimated GDV Following Refurbishment/HMO Conversion: £450,000
• Estimated Money Left in the Deal: £63,384 following refinancing at an assumed 75% LTV.
• The refinance figure assumes a £450,000 valuation, producing an indicative 75% LTV refinance of £337,500. Actual lender valuation, lending criteria, interest rates and releasable equity may differ.

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