HMO of the Week #3

HMO Project Summary

HMO After Refurbishment Photos

HMO Purchase

Purchase Price
£256000
Purchase Costs
£12000
Purchase Method
Cash
Loan to Value
Loan
Purchase Capital Employed
Purchase Date
Fabruary 2019
Acquisition Source
Estate Agent

Purchase was in an LTD company structure which was 50% myself and 50% investor. Investor financed the 120k development costs that were then repaid to the investor when the property was refinanced on completion of the works.
The property was acquired from an estate agent via Rightmove.

HMO Planning

Planning Use Class Before
C3
Planning Period
2 Months
Planning Acceptance Date
-

We submitted the planning application for the two storey side extension in early December 2018 and so by the time we completed in February planning had been granted.
We also needed to apply for a Party Wall agreement with the neighbour adjacent to the extension. This process was also completed by the time we completed it.

 

HMO Licensing

Licensed # Units
6
Licensed # Occupants
6

It’s always important to us to have everything in place so we can get spades in the ground as soon as we take control of the property.

HMO Before Refurbishment Photos

Floor Plans

HMO Architect: N/A

Rental Schedule

Double Ensuite
£600
Double Ensuite
£600
Double Ensuite
£625
Double Ensuite
£625
Double Ensuite
£575
Double Ensuite
£575
Total Gross Rental
£3600

Lettings & Management

BillsAllIncluded.com

Finished Project Cashflow Summary

Gross Rent
£3600
£500
£166.67
Net Rent
£2683
£1000
Net Cashflow
£1683

Financial Summary

Total Costs
£326160
Gross Dev Value
£400000
Value Increase
£73840
ReMortgage LTV
75%
£300000
Capital Left In
£100000
Gross Yield
10.80%
Gross Profit
£1683
Net Yield
8,05%
Annual Gross Profit (fx)
£20,200
ROCE
20.20%
Occupancy to Break Even %
53.24%


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