Latest Valuation
£50,000
Yield
12%
Selling Agent
Sourced Uxbridge

16% BMV – Fully Managed 2 Bed Flat in Wallsend

Leasehold with 999 years left
Guide Price
£42,000

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Key Features

  • Guaranteed 5 year rent
  • Blue chip Tenant
  • Hands-free
  • Turnkey investment
  • 12% net financed buyer
  • 16% BMV

The Property

Features
• A superbly presented 2-bed ground floor flat
• Well-presented modern style kitchen with utility space
• 2 double bedrooms, lounge with fire and contemporary decor
• White bathroom with shower over bath style suite
• Gas central heating via combi system
• UPVC double glazing
• Yard to the rear
• Chain free

Renovation & Project Management includes;
Arrange for the property to be renovated by trusted local builders and fully furnished as per very specific Mears specifications and liaise with Mears until the property is signed off for use by them;
Every property is set up to be compliant with Health & Safety Legislation, Disability Discrimination Act 1995 and the Equality Act 2010.

The Financials;

Fixed Asking Price £42,000
Open Market Value £50,000
(sold comparables & currently for sale)
Rental income £5,924 pa
ROCE: 12%

Legal Cost £1,500
Renovation £4,500
Furniture and Appliances £2,600
Project Management Fee £2,500
Sourcing fee £3,000
SDLT £1,260

TOTAL COST / CASH BUYER £57,360

FINANCED BUYER;

THE PURCHASE PRICE IS TOO LOW TO ACHIEVE GOOD FINANCE RATES AS WELL AS HOUSING ASYLUM SEEKERS WHERE THE NUMBER OF LENDERS WILL BE RESTRICTED
WE HAVE PROVIDED AN INDICATION BELOW ON OBTAINING FINANCE BASED ON WORST CASE SCENARIO I.E. A LTV OF 70% AND AN INTEREST RATE OF 7.99%. HOWEVER, RATES CAN VARY BETWEEN 5-8% AND IT MAY BE POSSIBLE TO OBTAIN AN LTV OF 75%
EXPERIENCE OF LANDLORD & THE CONTRACT DETAILS BETWEEN TENANTS AND YOU ARE ALSO IMPORTANT FACTORS LENDERS WILL TAKE INTO CONSIDERTAIONAS THEY CLASS THIS AS A “REPUTATION RISK”
HOWEVER, ONCE YOU OWN 4 PROPERTIES YOU ARE CONSIDERED A PORTFOLIO LANDLORD WHICH MEANS YOU CAN REFINANCE UP TO 75% AGAINST ALL OPEN MARKET VALUES WHICH WILL RELEASE A SIGNIFICANT AMOUNT OF YOUR CASH IN
WE HAVE LENDERS IN PLACE READY TO FINANCE AT THIS AND AT A LATER STAGE
PLEASE NOTE THE FINAL FINANCE OFFERED WILL BE BASED ON YOUR PERSONAL CIRCUMSTANCES

30% Deposit. Loan £29,400. Deposit £12,600
7.99% Interest. Interest-only. Annual £2,345. Monthly £196

Money in;

£12,600 Deposit
£1,500 Legal Cost
£4,500 Renovation
£2,600 Furniture and Appliances
£2,500 Project Management Fee
£3,000 Sourcing fee
£1,260 SDLT

TOTAL CASH IN £27,960

Cashflow;
Gross Rental per annum £5,924 per annum / £494 per month (slightly higher than standard rental rates £433)
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 £2,345
Buildings insurance £200 per annum (to include the occupancy of Asylum Seekers)
Ground Rent £0
Service Charge £0

Circa Net Cashflow £3,379 per annum
Circa Net Cashflow £282 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% Gross Cash Buyer
Based on invested £57,360 with gross income £5,924 per annum

10% Net Cash Buyer
Based on invested £57,360 with net income £5,724 per annum

21% Gross Financed Buyer
Based on invested £27,960 with gross income £5,924 per annum

12% Net Financed Buyer
Based on invested £27,960 with net income £3,379 per annum

10% ROCE Cash Buyer
Based on all monies invested

12% ROCE Financed Buyer
Based on all monies invested

DEPOSIT TO RESERVE: £5,000 (DEDUCTIBLE FROM PURCHASE)
Fully refundable if surveyor downs value or discover undisclosed problems or undisclosed legal issues with Title

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

Legal Cost £1,500
Your conveyancer's fees. We can recommend solicitors if need be

Renovation £4,500
Excluding VAT

Furniture and Appliances £3,000
Excluding VAT

Exchange
10%

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.

Planning Information

N/A

The Plan

The Financials;

Fixed Asking Price £42,000
Open Market Value £50,000
(sold comparables & currently for sale)

Legal Cost £1,500
Renovation £4,500
Furniture and Appliances £2,600
Project Management Fee £2,500
Sourcing fee £3,000
SDLT £1,260

Circa Net Cashflow £3,379 per annum
Circa Net Cashflow £282 per month

The Location

Located ideal for commuting and access to the coast.
Well located close to the Tyne Tunnel

Local Amenities;

Newcastle International Ferry Terminal 1.3 miles
North Shields Ferry Terminal 1.7 miles
Percy Main Primary School 0.5 miles
Dunn Street Primary School 0.7 miles

Average estimated value for a house in N28

£50,000

Judging by below we would say the open market value to be £50,000

SOLD COMPARABLES;

Rightmove Criteria: First part of postcode. This area only. Sold in last 1 year. Type - Flat. Price - Ascending.

£49,500 Sold May 2019 34 The Avenue, Wallsend, Tyne And Wear NE28 6BT
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=50688558&sale=9748201&country=england

£52,000 Sold Aug 2019 51 Burn Terrace, Wallsend, Tyne And Wear NE28 7BJ
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=81010646&sale=10537798&country=england

£53,000 Sold Jul 2019 31 South Terrace, Wallsend, Tyne And Wear NE28 6QE
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=69819034&sale=10537786&country=england

£57,000 Sold Mar 2019 55 Blackhill Avenue, Wallsend, Tyne And Wear NE28 9XS
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=31935599&sale=9748393&country=england

£57,000 Sold Apr 2019 29 Ash Grove, Wallsend, Tyne And Wear NE28 6PJ
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=56665755&sale=9748216&country=england

There are many more comparables of 2-bed flats sold upwards of £60,000

Sale activity
The average estimated value for a flat in NE28: £78,024 Price increase £1,693 (up 2.218%) Over the last 12 months
In the last 12 months, Average sale price £76,945
Properties sold 70
The average rent for a 2 bedroom flat in NE28 is currently: £433 PCM