What is a Sourced Approved Investment?
These properties have been carefully sourced and packaged by experienced property investment specialists and trusted Sourced Partners.
- Pre-vetted for investment potential
- Due diligence carried out
- Tailored for investor goals
- Backed by Sourced's expertise and network
Key financials
Profit pa£19,350
ROCE20%
Yield10%
Purchase £ £19,850
Property description
Strategy: HMO
Property Details
• Detached freehold property
• Existing 4-bedroom, 2-bathroom layout
• Total internal floor area: 156 m²
• Suitable for conversion into a 5-bedroom all-ensuite professional HMO
• Minimal structural alterations anticipated, reducing both conversion costs and programme duration
Financial Summary
• Target purchase price: £330,000
• Purchase costs: £19,850, including: SDLT: £15,000, Legal fees: £1,500, Sourcing fee: £3,000, Insurance: £350
• Estimated conversion costs: £33,000
• Estimated rental income: £3,500 PCM (£42,000 PA)
• Mortgage assumption: 75% Buy-to-Let mortgage at 5% interest, estimated monthly payment of £1,328
• Estimated net cash flow: £1,613 PCM (£19,350 PA)
• Gross yield: 10%
• ROCE: 20%
• Total cash investment required: £107,745
• Estimated commercial value (GDV): £420,000
Commercial Valuation
Estimated commercial value of £420,000 based on a 5-bed all-ensuite HMO generating £42,000 gross annual rental income at a 10% investment yield.
Funding
The financial appraisal assumes acquisition funded by a 75% LTV bridging loan and 100% development finance followed by refinancing onto a buy-to-let mortgage on completion of the HMO conversion.
Investment Rationale
• Strong value-add opportunity through conversion to a high-quality professional HMO
• Large detached property with an efficient layout suitable for five ensuite bedrooms
• Attractive projected cash flow and return on capital.
• Conservative commercial valuation supports a robust refinancing strategy
• Subject to planning approval and satisfactory due diligence, the scheme offers the potential to deliver a strong long-term income-producing asset.
Sourced reference: 217575497412855
Due diligence
No information supplied.
Disclaimer
Sourced endeavour to make our particulars accurate and reliable, however, they do not constitute or form part of an offer or any contract and are not to be relied as statements of representation or fact. The selling agent may or may not be the sole agent and will provide confirmation upon request. Any services, systems and appliances listed in this specification have not been tested by us and no guarantee as to their operating ability or efficiency given. All measurements have been taken as a guide and are not precise, please be aware some of the details may be waiting vendor approval. If you require confirmation or further information, please contact the selling agent. Fixtures and fittings are to be confirmed with the seller and not relied upon when listed. Sourced are not responsible for any loss of monies due to the purchase or purchase process with any property listed.
Key financials
Profit pa£19,350
ROCE20%
Yield10%
Purchase £ £19,850
Sales Agent
Sourced Agent
Lendwell Properties Limited
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What is a Sourced Approved Investment?
These properties have been carefully sourced and packaged by experienced property investment specialists and trusted Sourced Partners.
- Pre-vetted for investment potential
- Due diligence carried out
- Tailored for investor goals
- Backed by Sourced's expertise and network