Latest Valuation
£49,950
ROCE
%
Location

14.9% Net Yield – Fully Managed Armchair Property Investment

2 Floor Maisonette in Sheffield
Guide Price
£49,950

Share this page

Enquire about this property

Key Features

  • 5 Years + Guaranteed Rental Returns
  • Bluechip Tenant
  • No Management Fees and No Voids
  • Hands-Free - Project Managed
  • 14.9% Net Yield Financed Buyer
  • Government-Backed Project

The Property

2 floor maisonette on leasehold for 125 years from 21st May 2007.

The layout briefly comprises entrance vestibule, entrance hallway with stairs to first floor, lounge with walk in bay window, separate dining room, remodelled kitchen with built in oven, hob and extractor.
To the first floor, there are two double bedrooms and a family bathroom which comprises walk in shower cubicle, panelled bath, wash hand basin and WC,
To the second floor is a further bedroom, which would be ideal as a teenagers suite.
Externally, the property benefits from a palisade to the front and enclosed rear yard.

We are working with a company that has won a contract with Mears Housing Management Limited, part of the Mears Group to find suitable properties throughout the UK to provide homes for some of the most vulnerable people in the UK. Mears work in partnership with Central and Local Government. With Mears working with the Home Office, they are seeking very specific types of properties to house asylum seekers for which the company we have partnered with have secured the mandate. This company has been working with Mears since June 2019 and with their predecessors SERCO since 2015. This property has been viewed and assessed by Mears and they have instructed the mandated company to bring the property up to their specifications.

Who are Mears?

• Trading since 1988
• Listed on London Stock Exchange
• The average rate of growth £32.2m per year since listed
• 16,000 + employees
• 2019 revenue of £869.8m
• Hold three 3 new contracts from the Home Office to provide accommodation and support for asylum seekers
• Experts in Housing Management, Maintenance, Building and Social Care looking after 13,000 people
• Regular property visits
• Maintenance services, including daily repairs response
• Although they don't pay a deposit, they hand back the property in the same condition it was handed to them
• Mears always only house 1 Family and the number of adults/children are restricted to HMO standards
• 6 months Break Date from start applies to Mears only, however, the new owner can sign for 3 or 5-year lease
• A full inventory is undertaken at the cost of Mears
• Mears covers wear & tear and general maintenance regardless of cost. However, it is the owner's responsibility for structural issues, the boiler, paving issues & fencing

Entrance Porch
Accessed via double glazed entrance door.

Half Landing
Double glazed window.

Entrance Hallway
Stairs to first floor, radaitor.

Lounge (4.32m X 3.56m)
Lots of natural light from double glazed walk in bay window, radiator, wall mounted electric fire.

Dining Room (3.99m X 3.53m)
Wall mounted electric fire, double glazed window, radiator, under stairs storage cupboard.

Kitchen (5m X 2.44m)
Remodeled with a modern range of white base and wall units with contrasting working surfaces and upvc clad splashback. Built in oven, hob and extractor, stainless steel sink, two double glazed windows, upvc double glazed door to rear yard, recessed spotlights.

Stairs To First Floor
Landing
Bathroom
Sumptuously fitted with four piece suite comprising walk in shower cubicle, paneled bath, wash hand basin and WC, double glazed window, radiator.

Bedroom One (Front) (4.65m X 3.58m)
Double glazed window, radiator.

Bedroom Two (Rear) (4.01m X 2.87m)
Double glazed window, radiator.

Stairs To Second Floor
Bedroom Three (7.72m X 4.27m)
Varying roof heights, wall mounted electric fire, radiator.

Externally
To the front is a palisade area and the rear benefits from an enclosed rear yard.

Planning Information

N/A

The Plan

The Financials

Purchase Price £49,950

Renovation £7,750 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 £66,700

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 £34,965 Deposit £14,985
4.99% Interest. Interest-only. Annual £1,745. Monthly £145

Money in;

£14,985 Deposit
£7,750 Renovation
£3,000 Furniture and Appliances
£3,000 Project Management Fee
£3,000 Sourcing fee

TOTAL CASH IN £31,735

Gross Rental per annum £6,666 per annum / £556 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 £1,745
Buildings insurance £200 per annum (to include the occupancy of Asylum Seekers)
Ground Rent £10
Service Charge £0

Circa Net Cashflow £4,711 per annum
Circa Net Cashflow £393 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:

9.99% Gross Cash Buyer
Based on invested £66,700 with gross income £6,666 per annum

7.06% Net Cash Buyer
Based on invested £66,700 with net income £4,711 per annum

21.01% Gross Financed Buyer
Based on invested £31,735.00 with gross income £6,666 per annum

14.85% Net Financed Buyer
Based on invested £31,735 with net income £4,711 per annum

14.85% 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

Great location with local amenities such as leisure centres, shops and schools within walking distance.

There's been a 18% price growth in the last 5 years in the property's postcode.

Average estimated value for a house in S14

£86,585

There's been a 18% price growth in the last 5 years in the property's postcode.

Rightmove Sold comparables - S14 postcode. Within 1/4 mile - Sold in last 1 year - House

£53,000 - 42 Farmstead Close, Sheffield, South Yorkshire S14 1LR
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=73344863&sale=9796327&country=england

£60,000 - 21 Ironside Place, Sheffield, South Yorkshire S14 1FD
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=34344670&sale=10313716&country=england

£67,000 - 29 Abney Drive, Sheffield, South Yorkshire S14 1PB
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=78426113&sale=10588870&country=england