***6 Bed HMO with 6 en-suites* **31.3% PER ANNUM Return on Investment**

Description

INVESTMENT OPPORTUNITY

Westminster Road - Morecambe
6 bed, 6-bathroom HMO

Westminster Road - Financial Breakdown – 6 Bedroom – 6 Bathrooms

CASH REQUIRED COULD BE SIGNIFICANTLY REDUCED FROM THE FIGURES BELOW USING DEVELOPMENT FINANCE - ENQUIRE FOR MORE DETAILS !!

Purchase price: £125,000
Deposit @ 25% (if using finance): £31,250
Mortgage / bridging funds @ 75% LTV: £93,750

Purchase and project costs
Initial solicitor fees: £2,500
Initial professional fees (valuation, broker): £1,500
Stamp duty (SDLT): £6,250
Project hold costs: £1,500
Sourcing, design and project management set up costs and fees: £16,763
Refurbishment / development costs: £89,128
Furniture pack (includes flooring and blinds): £13,960
Bridging arrangement fees: £1,875
HMO licence: £758
Bridging 6 months interest: £5,344
Refinance to mortgage, solicitor fees: £1,500
Refinance professional fees (valuation, broker): £1,250

Total cash input (if using lending): £173,578
Total cash input (if using 100% cash): £260,109 (excludes costs associated with the bridging loan)
Total project cost (including bridging costs): £267,328

Gross development value and remortgage

Gross development value, based on individual flat values: £275,000
Maximum new mortgage value (80% LTV): £220,000
Funds released when the new mortgage settles the old mortgage: £126,250

Total capital left in the deal: £47,328
Profit: potential resale and ROI

Property uplift value: £7,672
ROI, net income vs capital left in deal: 31.3%
Projected monthly rental income

Room 1: £671
Room 2: £671
Room 3: £606
Room 4: £606
Room 5: £606
Room 6: £606
Total monthly income: £3,766 (£45,192 per annum)
Net income and returns (mortgage rate assumption: 6.00%)

New open market value: £275,000
Maximum new mortgage value: £220,000
Monthly rental income: £3,766
Monthly mortgage cost: £1,100
Monthly management fee @ 10% plus VAT: £452
Maintenance and other expenses (25% of rent): £942
Ground rent: none
Building insurance: £40

Monthly income after all costs: £1,233
Annual income after all costs: £14,791
NET RETURN ON INVESTMENT AFTER REFINANCE: 31.3%

BASED ON A REFINANCE VALUATION OF £275,000, WE CAN RE-MORTGAGE AFTER 6 MONTHS AT 80% LTV (£220,000) AND, AFTER REPAYING THE £93,750 BRIDGING LOAN, RELEASE £126,250. AT THIS STAGE YOU WILL HAVE AROUND £47,328 LEFT IN THE DEAL, AND AFTER ALL COSTS INCLUDING THE NEW MORTGAGE INTEREST, YOUR NET INCOME WILL BE AROUND £14,791 PER ANNUM, GIVING A NET RETURN ON CASH INVESTED OF 31.3%.


CHOOSE MORECAMBE: GREAT VALUE FOR MONEY: EXCELLENT POTENTIAL GROWTH RATE: FANTASTIC RETURNS

It has close commuting and business links with Lancaster, plus a strong increasing demand for contractors, engineers and construction professionals.
Heysham power stations currently EMPLOYS OVER 6500 OF WHICH 5000 are brought in from other areas to do specific roles within the 2 stations.
The outage programmes decommissioning of the power stations will begin in 2030 and will take 25 YEARS AT A COST OF 22BN ACCORDING TO GOVERNMENT FIGURES. THIS WILL REQUIRE A MASSIVE INCREASE IN EMPLOYMENT AND SPECIALIST EMPLOYEES AND CONTRACTORS.
This is a fantastic opportunity to invest within the quality living sector, with increasing demand in a COSTAL TOWN AND DEMAND FROM RELOCATING PROFESSIONALS from across the country.
The area already has a of LARGE SHORTFALL OF ACCOMMODATION FOR CONTRACTORS.
THE NEW EDEN PROJECT brings workers who need flexible, furnished, short-to-medium-term rooms close to the site.

THE FINISHED PRODUCT

 New inspire landlord thermostatic system can be fitted to control the usage of the properties central heating which will help with the significant rise in energy prices and keep the bills affordable for the landlord. Savings can be up to £1000 a year.
 Will be refurbished to the highest standard and contain all the everyday necessities within the furniture pack including a washing machine, vacuum cleaner and microwave.
 Will be supplied, fully regulated and compliant with the local council following inspection on completion of the building work with all necessary approvals.
 Every property has interlinked smoke alarms in all rooms, emergency lighting systems, appropriate fire panels and heat sensors.