ANNUAL RETURNS ON INVESTMENT OF 40% WITH LOW CASH INVESTMENT

Description

INVESTMENT OPPORTUNITY

Charles Street – Darlington
5 bed, 5-bathroom HMO

Charles Street - Financial Breakdown – 5 Bedroom – 5 Bathrooms

Purchase Price: £72,000.00

Deposit: £21,078.00 (includes 6 months interest for bridging loan)

Conversion/Build: £81,781.88* approx. (subject to further onsite visits)
Set up costs/ Design & Build Fees - £15,500.00
Legals Estimate - £1,400.00
Survey - £650.00

Stamp Duty - £3,600.00

Furniture and flooring packs can be purchased at an additional cost - £11,554.49

Total Project Cost: £189,570.37 (includes 6 months interest for bridging loan)

Total Cash Outlay: £135,570.37 (includes 6 months interest for bridging loan)

Projected Rental Income: £115.00 PPPW net of bills (water, gas, electricity) x 5 = £29,900 per annum
Management: £4,368.00 including VAT - (10% fully managed)

Net Income: £25,532.00

NET RETURN ON INVESTMENT AFTER REFINANCE: 40.23%

Based on a refinance valuation of £180,000.00 we can release approximately £144,000.00 by re-mortgaging after 6 months. At this stage, you will have around £45,570.37 left in the deal and after deducting the new, increased mortgage interest, your net income will be around £18,322.00 per annum giving you a net return on cash invested of 40.23%.


CHOOSE DARLINGTON: CONNECTED MARKET TOWN: GROWTH HUB IN THE TEES VALLEY: STRONG INFRASTRUCTURE & EMPLOYMENT BASE

• Strategic Location: Darlington is a well-connected historic market town in the North East, with a population of around 110,000 and easy access to Newcastle, Leeds, and York via the A1(M) and the East Coast Mainline — with direct trains to London in under 2.5 hours.

• Government Investment Magnet: Home to the newly established Darlington Economic Campus, a key government relocation site for departments such as the Treasury, Department for Business, and HMRC, bringing thousands of high-quality civil service jobs to the area.

• Strong Rail Heritage & Infrastructure: The town boasts a major railway industry presence, including Hitachi Rail’s manufacturing facility, and is closely linked to Tees Valley's industrial and logistics corridors, including Teesworks, the UK’s largest freeport.

• Affordable & High-Yielding Property Market: Property prices remain below the national average, while rental yields of 7–9% are achievable in popular areas, especially near the town centre and rail station.

• Growing Demand from Students and Professionals: Darlington College and Teesside University’s local presence supports a modest but steady student population, while professionals working at nearby NHS trusts, Hitachi, and government offices sustain strong rental demand.

• Ongoing Regeneration & Town Centre Revival: Multi-million-pound investments are transforming the town centre, including new leisure facilities, transport hubs, and commercial space, boosting the town’s profile and footfall.

• Excellent Connectivity for Commuters: With Teesside International Airport just 10 minutes away, Darlington is an attractive base for professionals needing fast regional and international access.

• Long-Term Growth Outlook: With its unique blend of government backing, strong rail links, affordable homes, and infrastructure development, Darlington is fast becoming a key location for savvy investors seeking sustainable growth and stable returns.

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.

• All rooms will be rented at £140.00 (ensuite) per person per week.

• 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.

Ad ID: 1499284342