**Fantastic 5 Bed HMO Project - Hands off investment - 36% Return on Investment**

Description

Salthouse Road - 5 Bed HMO Project
Barrow, Cumbria

PROPERTY COSTS

Acquisition
Purchase price £105,000
Deposit @ 25% (if using finance) £26,250
Mortgage / bridging funds @ 75% LTV £78,750
Purchase & project costs
Initial solicitor fees £2,000
Initial professional fees (valuation, broker) £650
Stamp duty (SDLT) £5,250
Project hold costs £600
Sourcing, design, project management set up costs & fees £16,763 includes VAT
Refurbishment / development costs £82,464 includes VAT
Furniture pack - includes flooring and blinds £12,558 includes VAT
Bridging arrangement fees £1,575
Bridging 6 months interest £4,489
Refinance to mortgage — solicitor fees £1,000
Refinance professional fees (valuation, broker) £750

TOTAL CASH INPUT (IF USING LENDING) £154,348
TOTAL CASH INPUT (IF USING 100% CASH) £227,035 This excludes costs associated with the bridging loan

GROSS DEVELOPMENT VALUE & REMORTGAGE

Gross development value — based on individual flat values £235,000
Maximum new mortgage value (80% LTV) £188,000

FUNDS RELEASED WHEN NEW MORTGAGE SETTLES OLD MORTGAGE £109,250

Total capital left in the deal £45,098

Profit — potential resale & ROI
PROPERTY UPLIFT VALUE £7,966

Property uplift value (as a % return) 3.5%
ROI — net income vs capital left in deal -

Total monthly income £3,337

Net income & returns

Mortgage rate assumption 5.50% mortgage rate
New open market value (OMV) £235,000
Maximum new mortgage value (against OMV) £188,000
Monthly rental income £3,337
Monthly mortgage cost £862
Monthly management fee @ 10% plus VAT £400
Maintenance & other expenses (MOE) @ 20% £667
Ground rent -
Building insurance £45

MONTHLY INCOME AFTER ALL COSTS £1,362

ANNUAL INCOME AFTER ALL COSTS £16,347

ROI — net income vs capital left in deal 36.2%

BARROW HMO MARKET IS BEING POWERED BY THEY EXPANSION OF BAE SYSTEMS SUBMARINES - BRINGING SUSTAINED DEMAND FROM ENGINEERS, PROJECT MANAGERS, CONTRACTORS AND DEFENCE-SECTOR PROFESSIONALS.

Unlike many Northern HMO towns, BARROW IS NOT HEAVILY STUDENT DEPENDENT. Demand is driven by working professionals on strong salaries rather than transient student lets.

Major infrastructure and defence investment linked to the UK submarine programme is creating long-term employment visibility in Barrow-in-Furness.

HIGH CALIBRE TENANTS typically seek clean, modern, all-inclusive accommodation close to transport links and major employers — IDEAL CONDITIONS FOR PREMIUM HMOs.

Strong local employment base from both BAE SYSTEMS SUBMARINES and the local hospital supports diversified tenant demand.

Furness General Hospital creates consistent demand from NHS staff, travelling healthcare workers and contractors.

Limited high-quality shared accommodation stock means well-managed HMOs can stand out quickly in the local market.

Barrow offers COMPARATIVELY LOW ENTRY PRICES VERSUS STRONGER SOUTHERN HMO MARKETS, CREATING ATTRACTIVE yield potential for investors.

DEFENCE RELATED EMPLOYMENT TENDS TO BE RESILIENT AND GOVERNMENT BACKED, giving Barrow a more stable occupational story than many comparable northern towns.

PROFESSIONAL TENANTS LINKED TO ENGINEERING, DEFENCE and healthcare sectors often value longer stays and reliable accommodation standards — supporting reduced void risk.

OPPORTUNITY EXISTS TO REPOSITION TIRED HOUSING STOCK INTO MODERN, PROFESSIONAL HMOs TARGETED AT SKILLED WORKERS RATHER THAN LOW END TENANT DEMAND.

Barrow’s rental story is increasingly being driven by economic regeneration and strategic national defence investment rather than traditional university demand cycles.

Ad ID: 1513480855