Sourced Approved Investment

Guaranteed Rent BTL/HMOs North East - House

£ 125,660

Added: 14/11/2024

Profit pa£10,806

ROCE999%

Yield9%

Property description

Strategy: HMO

Introducing a unique investment opportunity: a portfolio of four high-yield properties located in Stockton-on-Tees. THESE PROPERTIES CAN BE PURCHASED INDIVIDUALLY. This portfolio is perfect for seasoned investors or newbies. Anyone seeking secure, hands-off investments. Each property comes with fully operational commercial contracts, ensuring a stable cash flow from day one. With leases already in place, these properties offer a low-risk, high-return opportunity with minimal management required.

The portfolio includes a mix of HMOs (House in Multiple Occupation) and family rental units (Buy-to-Let). All properties are currently under long-term social housing contracts with Stockon-on-Tees Borough Council. These contracts are designed for ease, covering all maintenance and repairs (excluding external structural elements) and eliminating void periods. The consistent renewal of these agreements, often spanning over a decade, highlights the reliability of this investment model. Buyers benefit from guaranteed rent and minimal property management, essentially acquiring a cash-flowing business.

Financing Options:
While cash buyers are preferred for this portfolio, mortgage financing is also possible through our specialist brokers familiar with social housing lending.

Seller’s Background:
The seller is a large institutional investor known for their dynamic approach to property investment.

Why Invest?
This portfolio offers a rare combination of security and profitability. With no worries about voids, rent arrears, or extensive management, investors can enjoy peace of mind and robust returns. The social housing contracts provide a reliable revenue stream, making this an ideal option for those seeking a hands-off investment with strong yield potential.

Don’t miss this opportunity to acquire a cash-flowing portfolio that requires minimal involvement, delivering consistent returns and long-term security.

- Fully Tenanted: Long-term leases with trusted social housing providers. Current leases are 7 years, with 2 years remaining. Have been renewed in the past, very likely to be renewed again.
- Hands-Off Management: Repairs and maintenance are managed under contract, ensuring minimal landlord involvement.
- Lease Operator: Stockon-on-Tees Borough Council

▪ Total (Portfolio) Purchase Price: £363,018.14
▪ Stamp Duty (5% on Each Property): £18,150.91
▪ Estimated Legal Fees: £6,000 (assuming £1,500 per property)
▪ Sourcing Fee: (2% Portfolio, £5,500 excluding VAT individually)
▪ Total Funds Required: £394,429.41
▪ Yield: 8.60%

▪ Rental Income: £31,219.56
▪ ROI: 8.06%

Financial Breakdown with 75% LTV:
▪ Loan Amount: £272,263.61
▪ Deposit Required: £90,754.54
▪ Stamp Duty (5% Surcharge): £18,150.91
▪ Estimated Legal Fees: £6,000
▪ Sourcing Fee (2% Portfolio, £5,500 excluding VAT individually)
▪ Total Funds Needed (Including Deposit): £122,165.81
▪ Annual Mortgage Interest (5% on 75% LTV): £13,613.18
▪ Net Rental Income Profit: £17,606.38
▪ ROI: 15.32%
▪ ROCE (Return on Capital Employed): 19.40%

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Sourced reference: 652517771974853

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.

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Due diligence

No information supplied.

Sales Agent

Mr Josh Rapley

Astra Property Group

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