Latest Valuation
£50,000
ROCE
%
Location

15.5% Net Yield – Fully Managed Armchair Property Investment

3 Bed Mid Terraced House in Hartlepool
Guide Price
£50,000

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Key Features

  • 5 Years + Guaranteed Rental Returns
  • Bluechip Tenant
  • No Management Fees and No Voids
  • Hands-Free - Project Managed
  • 15.5% Net Yield Financed Buyer

The Property

A beautiful 3 bed mid-terrace house, immaculately maintained and is stylishly presented with refitted modern kitchen and bathroom, skimmed walls with neutral modern decor.

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 Lobby
accessed via UPVC Double Glazed door, door leading to;

Lounge 14' 9" x 13' 7" (max) ( 4.50m x 4.14m (max) )
UPVC Double Glazed window to front aspect, modern and stylish oak fireplace with gas fire, coved cornicing, radiator.

Inner Lobby
understairs storage cupboard, access to Kitchen.

Kitchen 17' 3" x 5' 9" ( 5.26m x 1.75m )
fitted with a range of white wall and base units with contrasting work surfaces and co-ordinating splashback, circular single stainless steel sink/drainer unit, gas cooker point, recess for washing machine, radiator, UPVC Double Glazed window to side aspect, UPVC Double Glazed door leading to rear yard.

Bathroom
UPVC Double Glazed window to rear aspect, modern white suite comprising panelled bath with shower over, pedestal wash hand basin, low level low flush WC, cream modern tiling to walls and floor, radiator.

Landing
loft void access.

Bedroom 1 12' 3" (max) x 10' 6" (excluding robes) ( 3.73m (max) x 3.20m (excluding robes) )
UPVC Double Glazed window to front aspect, coved cornicing, radiator.

Bedroom 2 8' 10" x 6' 5" ( 2.69m x 1.96m )
UPVC Double Glazed window to rear aspect, cupboard housing 'Baxi' combination boiler, radiator.

Bedroom 3 8' 2" x 6' 5" ( 2.49m x 1.96m )
UPVC Double Glazed window to rear aspect, radiator.

Planning Information

N/A

The Plan

The Financials

Purchase Price £50,000

Renovation £5,500 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 £64,500

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 £35,000 Deposit £15,000
4.99% Interest. Interest-only. Annual £1,747. Monthly £146

Money in;

£15,000 Deposit
£5,500 Renovation
£3,000 Furniture and Appliances
£3,000 Project Management Fee
£3,000 Sourcing fee

TOTAL CASH IN £29,500

Gross Rental per annum £6,521 per annum / £543 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 £1,747
Buildings insurance £200 per annum (to include the occupancy of Asylum Seekers)
Ground Rent £0
Service Charge £0

Circa Net Cashflow £4,574 per annum
Circa Net Cashflow £381 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:

10.11% Gross Cash Buyer
Based on invested £64,500 with gross income £6,521 per annum

7.09% Net Cash Buyer
Based on invested £64,500 with net income £4,574 per annum

22.10% Gross Financed Buyer
Based on invested £29,500.00 with gross income £6,521 per annum

15.51% Net Financed Buyer
Based on invested £29,500 with net income £4,574 per annum

15.51% 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

Things to do in Keswick in the area:
- National Trust Borrowdale and Buttermere Valleys
- Lake District Wildlife Park
- Kong Adventure Centre
- Derwent Pencil Museum
- Keswick Ministries
- Keswick Brewery Tours and Shop
- Puzzling Place
- Wordsworth House and Garden

Average estimated value for a house in TS26

£76,697

13.20% last 5 years postcode house price growth

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