Latest Valuation
£55,000
ROCE
%
Location

12.6% Net Yield – Fully Managed Armchair Property Investment

2 bed flat in Tyne and Wear
Guide Price
£55,000

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Key Features

  • 5 Years + Guaranteed Rental Returns
  • Bluechip Tenant
  • No Management Fees and No Voids
  • Hands-Free - Project Managed
  • 12.6% Net Yield Financed Buyer
  • Government-Backed Project

The Property

This 2 bedroom, Tyneside style ground floor flat is conveniently located for access to all local amenities, benefiting from double glazing and gas heating. Accommodation comprises entrance hallway, lounge/dining room with feature fireplace, fitted kitchen, shower room/WC comprising a 3 piece white suite with a double walk in shower cubicle. Externally, there is a rear yard. 999 Tyneside lease as of 1989.

Location
Situated in North Shields just off Norham Road where there are a wealth of amenities which include shops, bus services, restaurants and Metro Station, which provides links to the Coast and Newcastle City Centre. Access to Tyne Tunnel and A19.

Ground Floor
Entrance Hall

Kitchen
2.29m x 2.03m
With a range of wall and base units, tiled splash back, gas hob and integrated oven, stainless steel sink and plumbing for washing machine. Double glazed window, upvc door to rear yard and access to the shower room

Lounge/Dining Room
4.47m x 3.76m
The lounge has been decorated with a modern theme, with feature fireplace, double glazed window and carpet flooring.

Bedroom
3.4m x 2.21m
Double bedroom with double glazed window, radiator.
Shower Room/WC

Planning Information

N/A

The Plan

The Financials

Purchase Price £55,000

Renovation £4,750 EXC VAT
Furniture and Appliances £3,000 EXC VAT
Project Management Fee £3,000 EXC VAT
Sourcing fee £3,000 NO VAT

TOTAL COST / CASH BUYER £68,750

FINANCED BUYER;

WE HAVE LENDERS IN PLACE READY TO FINANCE
PLEASE NOTE THE FINAL FINANCE OFFERED WILL BE BASED ON YOUR PERSONAL CIRCUMSTANCES

30% Deposit. Loan £38,500 Deposit £16,500
4.99% Interest. Interest-only. Annual £1,921. Monthly £160

Money in;

£16,500 Deposit
£4,750 Renovation
£3,000 Furniture and Appliances
£3,000 Project Management Fee
£3,000 Sourcing fee

TOTAL CASH IN £30,250

Gross Rental per annum £5,924 per annum / £494 per month (slightly higher than standard market rental rates)
Contracted for 5 years. Mears contract with the Home Office runs for 10 years so they are likely to extend the lease

Less annual costs:
Mortgage £1,921
Buildings insurance £200 per annum (to include the occupancy of Asylum Seekers)
Ground Rent £0
Service Charge £0

Circa Net Cashflow £3,803 per annum
Circa Net Cashflow £317 per month

Please note - rent to be paid 30 days in arrears
You will also need to supply, if not already in place;
Certificates – Gas, EPC, Electrical & PAT test

Yields based on all invested funds:

8.62% Gross Cash Buyer
Based on invested £68,750 with gross income £5,924 per annum

5.53% Net Cash Buyer
Based on invested £68,750 with net income £3,803 per annum

19.58% Gross Financed Buyer
Based on invested £30,250.00 with gross income £5,924 per annum

12.57% Net Financed Buyer
Based on invested £30,250 with net income £3,803 per annum

12.57% ROCE Financed Buyer
Based on all monies invested

DEPOSIT TO RESERVE: £2,000
Fully refundable if surveyor downs value or discover undisclosed problems or undisclosed legal issues with Title and if seller withdraws

Sourcing fee: £3,000
Payable at Exchange through solicitors i.e. after RICS survey
Fully refundable if legal issues with Title discovered that were previously undisclosed or if seller withdraws

Exchange
10%

Additional costs
Legal fee (We can recommend solicitors if need be)
Valuation fee
SDLT

Sold As Seen
The property is sold as seen and all numbers provided are a guide only based on professional opinions and should not be solely relied upon. You must do your own due diligence and seek professional advice if necessary.

The Location

Situated in North Shields, just off Norham Road, where there are a wealth of amenities which include shops, bus services, restaurants and Metro Station, which provides links to the Coast and Newcastle City Centre.

There is also access to Tyne Tunnel and A19.

There has been a 4% price growth in the last 5 years in the area.

Average estimated value for a house in NE29

£88,146

There has been a 4% price growth in the last 5 years in the area.

Rightmove Sold comparables - NE29 postcode. Within 1/4 mile - Sold in last 1 year - House

£56,500 - 33 Ewen Court, North Shields, Tyne And Wear NE29 8EZ
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=68136529&sale=9748540&country=england

£57,000 - 44 Collingwood View, North Shields, Tyne And Wear NE29 0ET
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=69382969&sale=10537924&country=england

£58,000 - 35 Railway Terrace, North Shields, Tyne And Wear NE29 6RP
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=71330813&sale=56705834&country=england