NEW 5 BED HMO WITH OVER 30% RETURN ON INVESTMENT PER ANNUM

Description

INVESTMENT OPPORTUNITY

Lowthian Road – Hartlepool
5 bed, 5-bathroom HMO
Lowthian Road - Financial Breakdown – 5 Bedroom – 5 Bathrooms
Purchase Price: £62,000.00
Deposit: £18,150.50 (includes 6 months interest for bridging loan)
Conversion/Build: £86,425.88* 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 - £3,100.00
Furniture and flooring packs can be purchased at an additional cost - £11,554.49
Total Project Cost: £183,280.87 (includes 6 months interest for bridging loan)
Total Cash Outlay: £136,780.87 (includes 6 months interest for bridging loan)
Projected Rental Income: £125.00 PPPW net of bills (water, gas, electricity) x 4 £140.00 PPPW net of bills (water, gas, electricity) x 1 = £26,780 per annum
Management: £3,993.60 including VAT - (10% fully managed)
Net Income: £22,786.40
NET RETURN ON INVESTMENT AFTER REFINANCE: 33.81%
BASED ON A REFINANCE VALUATION OF £170,000.00 WE CAN RELEASE APPROXIMATELY £136,000.00 BY RE-MORTGAGING AFTER 6 MONTHS. AT THIS STAGE, YOU WILL HAVE AROUND £47,280.87 LEFT IN THE DEAL AND AFTER DEDUCTING THE NEW, INCREASED MORTGAGE INTEREST, YOUR NET INCOME WILL BE AROUND £15,986.40 PER ANNUM GIVING YOU A NET RETURN ON CASH INVESTED OF 33.81%.

CHOOSE HARTLEPOOL: EMERGING COASTAL HUB: STRATEGIC INVESTMENT ZONE: ATTRACTIVE LONG-TERM OPPORTUNITY

• Hartlepool is a historic maritime town on the northeast coast of England, with a population of around 90,000 and part of the wider Tees Valley urban area of over 700,000 residents.

• It offers strong transport links, with easy access to Middlesbrough, Newcastle, and Durham, and is well connected via the A19 and East Coast Mainline (via nearby Darlington), linking to London in under 3 hours.

• Hartlepool benefits from investment focus as part of the Teesside Freeport and Levelling Up agenda, with large-scale regeneration plans including waterfront redevelopment, new housing, and infrastructure upgrades.

• Key employers in the area include Hartlepool Power Station (EDF Energy), Able UK, Cameron’s Brewery, and companies within the offshore energy, engineering, and logistics sectors, creating steady demand for both short- and long-term lets.

• Proximity to Teesworks, the UK’s largest industrial zone focused on net zero and clean energy, is set to attract billions in investment and thousands of jobs, positioning Hartlepool as a strategic base for workers and professionals.

• Affordable entry prices combined with above-average rental yields make Hartlepool an appealing prospect for investors seeking strong cash flow and long-term capital appreciation as regeneration efforts take hold.

• With an expanding economy, limited quality rental stock, and a town centre undergoing modernisation, Hartlepool offers compelling growth potential as one of the UK’s most investable coastal towns.


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.


*Please note, VAT will be charged at the appropriate rate where applicable

Ad ID: 1498853793