3 Self-Contained Flats in Exeter with Title Split and All-Money-Out Potential

This is an attractive income-producing investment opportunity comprising 3 self-contained units, offered at a level that works both for strong cashflow and a refinance-led exit strategy.
- Vendor is looking for a quick exchange
- Deal structured around a 5% quick-exchange opportunity
- Asset is treated as commercial for SDLT purposes
- SDLT is only £2,500, significantly reducing acquisition costs

What is the opportunity?
- Purchase price: £280,000
- Refurbishment: approximately £42,500
- Projected GDV: £480,000 across the 3 units

Two clear strategies:
- Title split, refurbish and resell the units individually
- Keep the asset under one title, refurbish and rent the flats individually for income

Growth of the area
- Opportunity to create value through conversion, improvement and refinance
- Not reliant only on passive market growth
- Combination of low entry price, manageable refurb spend and strong end values

Return
- Projected profit on sale: £138,316
- ROCE: 95%
- ROI: 40%
- Profit margin: 29%

Stress-tested:
- 10% below GDV → £90,316 projected profit
- 20% below GDV → £42,316 projected profit

Potential
- Sell all 3 units after title split and refurbishment
- Refinance and hold for long-term income
- Recycle capital into the next deal after refinance

Refinance scenario:
- Projected value: £480,000
- 75% mortgage: £360,000
-
Discount
- Purchase: £280,000
- GDV: £480,000
- Substantial value gap that underpins the deal
- Buy well, add value, refinance strongly, and retain equity upside

All money out
- Total invested by borrower: £145,684
- Projected cash out via refinance: £164,000
- Projected to return all invested capital
- Potential to release additional funds
- Investor retains asset and ongoing cashflow

Rental figures
- £950 pcm per unit
- £2,850 pcm total
- £34,200 annual gross rent

This equates to:
- Gross yield: 7%
- Monthly net cashflow: £1,375
- Annual net cashflow: £16,500

Resale
- Unit 1: £160,000
- Unit 2: £160,000
- Unit 3: £160,000
- Total GDV: £480,000

Important note on refurbishment costs
- Approximate refurbishment: £42,500
- Does not include title split costs
- Investors should allow separately for legal and professional costs

Why this deal stands out
- 5% quick exchange opportunity
- Only £2,500 SDLT (commercial classification)
- Title split and resale or hold and rent strategy
- Projected profit of £138,316
- All-money-out refinance potential
- 7% gross yield
- Stress-tested and remains profitable below GDV

Sourced reference: 562335382729426