Latest Valuation
£400,000
ROCE
%
Location

17% Net Yield Income Producing Block of 8 Flats Blackpool

A mix of tenant types - all managed and rented
Guide Price
£400,000

Share this page

Enquire about this property

Key Features

  • High Yield
  • Income Producing
  • Fully Tenanted
  • Fully Managed - Hands-Off
  • 17% ROCE
  • Yield 17% Net for Finance Buyer

The Property

Deal Background
This property is off-market from a vendor that is looking to exit quickly.
The property has been fully refurbished in Summer 2019.
Consisting of 8 self-contained flats.
The beauty of the deal is that it is already fully tenanted, income producing.
The tenants have been in occupation since Summer 2019.
The advised route to do this deal is to buy the property and sit and collect the yield, which is upwards of 17%.
There are 2 car parking spaces
One freehold title.
Sale includes fittings, furniture and contents that was provided by the current owner to the tenants
We are not aware of any issues with the property.

Tenants
A mix of tenant types, all managed and rented and rents collected and distributed (managed) by My Blackpool Home (part of Blackpool council) who charge 10% (incl VAT).
Tenants have been in occupation since late summer 2019. All flats were rented out within 6 weeks of the current owner handing it over to My Blackpool Home for management.
All tenants are on standard AST’s.
Rent has always been paid on time.
All tenants were fully referenced by My Blackpool Home.
My Blackpool Home have taken on the tenancy on an annual rolling contract

Deceptive period terraced house which consists of 8 self-contained residential flats. Set over four floors, the property boasts 1 two-bedroom flat and 7 one-bedroom flats. There are two flats per floor. Each flat has its own separate coin meters, all electric-only throughout with no mains gas. All flats feature double glazing, fitted kitchen and bathroom/shower rooms. The current owner has documentation stating there are no restrictive conditions regarding the use of the flats and can be used as permanent dwellings.

Flat 2- Ground Floor: Entrance- pathway leading to the communal front door.
Hallway- communal- leading to the flat.
Lounge- (13'9" x 11'9") Double glazed window to side, electric heater, fitted carpet, power points.
Other- Hallway leading to Bedrooms. Storage heater and fitted carpet.
Kitchen- (7'5" x 5'26") Double glazing to side, wall and base units, stainless steel sink and drainer, cooker point, power points, tiled splashback and vinyl flooring.
Bedroom 1- (10'10" x 9'9") Double glazed window to side, fitted carpet and power points.
Bedroom 2- (9'2" x 9'6") Double glazed window to side, fitted carpet and power points.
Shower room- (7'5" x 4'1") Frosted window to side, shower cubicle, electric shower, low-level WC, wash hand basin, tiled splashback, vinyl flooring and extractor fan.

Flat 3 - Ground Floor to Front: Entrance- pathway leading to the communal entrance.
Kitchen / Lounge- (14'8" x 13'01") Double glazed bay windows to front, stainless steel sink and drainer, wall and base units, electric cooker, storage cupboard, fitted carpet and electric radiator.
Bathroom- (5'0" x 7'4") Frosted window to rear, low-level WC, panel enclosed bath, electric shower, wash hand basin, tiled splashback and vinyl flooring.
Bedroom 2- L shaped room (12'4" x 11'3") Double glazing to rear, coving, fitted carpet and power points.

Flat 4: Hallway- (5'9" x 7'2") Lobby area with fitted carpet.
Kitchen / Lounge- (14'6" x 12'2") Double glazed window to side and rear, wall and base mounted units, stainless steel sink with drainer, space for under counter fridge, electric heater, laminate flooring, power points and storage cupboard.
Bedroom 1- (9'2" x 7'5") Double glazed windows to side, electric heater, fitted carpet and power points.
Bathroom- (7'4" x 4'5") Frosted double glazed window to rear, panel enclosed bath with electric shower, low-level WC, wash hand basin, tiled splashback and vinyl flooring.

Flat 5: Lounge- (15'4" x 10'9") Double glazed bay window to front, electric heater, fitted carpet and power points.
Kitchen- (9'8" x 6'5") Double glazed window to front, wall and base units, stainless steel sink with drainer, electric cooker point, plumbed for washing machine, storage cupboard, tiled splashback, vinyl flooring and power points.
Bedroom 1- L shaped room (11'9" x 11'3") Double glazed window to rear, fitted carpet and power points.
Bathroom- (9'4" x 4'4") Frosted window to rear, panel enclosed bath with electric shower, low-level WC, wash hand basin, tiled walls and vinyl flooring.

Flat 6: Hallway- (5'9" x 7'2") Lobby area with fitted carpet.
Kitchen / Lounge- (14'6" x 12'2") Double glazed window to side and rear, wall and base mounted units, stainless steel sink with drainer, space for under counter fridge, electric heater, laminate flooring, power points and storage cupboard.
Bedroom 1- (9'2" x 7'5") Double glazed windows to side, electric heater, fitted carpet and power points.
Bathroom- (7'4" x 4'5") Frosted double glazed window to rear, panel enclosed bath with electric shower, low-level WC, wash hand basin, tiled splashback and vinyl flooring.

Flat 7: Lounge- (15'4" x 10'9") Double glazed bay window to front, electric heater, fitted carpet and power points.
Kitchen- (9'8" x 6'5") Double glazed window to front, wall and base units, stainless steel sink with drainer, electric cooker point, plumbed for washing machine, storage cupboard, tiled splashback, vinyl flooring and power points.
Bedroom 1- L shaped room (11'9" x 11'3") Double glazed window to rear, fitted carpet and power points.
Bathroom- (9'4" x 4'4") Frosted window to rear, panel enclosed bath with electric shower, low-level WC, wash hand basin, tiled walls and vinyl flooring.

Flat 8: Hallway- (5'9" x 7'2") Lobby area with fitted carpet.
Kitchen / Lounge- (14'6" x 12'2") Double glazed window to side and rear, wall and base mounted units, stainless steel sink with drainer, space for under counter fridge, electric heater, laminate flooring, power points and storage cupboard.
Bedroom 1- (9'2" x 7'5") Double glazed windows to side, electric heater, fitted carpet and power points.
Bathroom- (7'4" x 4'5") Frosted double glazed window to rear, panel enclosed bath with electric shower, low-level WC, wash hand basin, tiled splashback and vinyl flooring.

Flat 9: Open Plan Lounge and Kitchen- Double glazed bay window to front, electric heater, fitted carpet and power points. Wall and base units, stainless steel sink with drainer, electric cooker point, plumbed for washing machine, storage cupboard, tiled splashback, vinyl flooring and power points.
Bedroom 1- L shaped room (11'9" x 11'3") Double glazed window to rear, fitted carpet and power points.
Bathroom- (9'4" x 4'4") Frosted window to rear, panel enclosed bath with electric shower, low-level WC, wash hand basin, tiled walls and vinyl flooring.

The Financials:

FIXED PURCHASE PRICE: £400,000
REFURB £0
STAMP DUTY £22,000
LEGALS £1,500
SOURCING FEE £5K

TOTAL COST / CASH BUYER £428,500

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

Sourcing fee £5,000
Payable at Exchange through solicitors i.e. after RICS survey
Fully refundable if legal issues with Title discovered that were previously undisclosed

Exchange
10%

SDLT
We are only providing a possibility that you may be able to reduce stamp duty but you must take professional legal and tax advice as there are several caveats to qualify.
As you are buying 8 flats in one block you MAY be able to mitigate part of the stamp duty by;
1. Claiming multiple dwellings relief - £400K / 8 = £50K but min 1% = £4K SDLT
2. 6 or more rule, therefore, pay commercial SDLT rates = £9,500

FINANCED BUYER. WE HAVE LENDERS IN PLACE READY TO FINANCE
PLEASE NOTE THE FINAL FINANCE OFFERED WILL BE BASED ON YOUR PERSONAL CIRCUMSTANCES
THE FIGURES PROVIDED ARE FOR TYPICAL LENDING ON THIS TYPE OF PROPERTY

Finance to purchase;

Mortgage 75% LTV at 4% Interest Only
Loan £300K. Monthly £1K PCM / £12K pa
Deposit £100,000

Money in;

£100,000Deposit
STAMP DUTY £ 22,000
LEGALS £1,500
SOURCING FEE £5K

TOTAL CASH IN £128,500

Cashflow;
Total Gross Income: £37,960 pa / £3,163 pcm/ £730 per week

Rental weekly Income per flat
3 x £90
4 x £85
1 x £120

Less:

10% (incl VAT) Management fee £3,796 per annum
Mortgage £12,000 per annum

Circa Net Cashflow £22,164 per annum
Circa Net Cashflow £1,847 per month

Yields based on actually invested funds:

9% Gross Cash Buyer
Based on invested £428,500 with gross income £37,960 per annum

5% Net Cash Buyer
Based on invested £428,500 with net income £22,164 per annum

30% Gross Finance Buyer
Based on invested £128,500 with gross income £37,960 per annum

17% Net Finance Buyer
Based on invested £128,500 with net income £22,164 per annum
This means you get your invested monies back before 6 years and thereafter produce an infinite return.
You also benefit from any potential capital appreciation over time

17% ROCE

Planning Information

N/A

The Plan

The advised route to do this deal is to buy the property and sit and collect the yield, which is upwards of 17%.

The Financials:

FIXED PURCHASE PRICE: £400,000
REFURB £0
STAMP DUTY £22,000
LEGALS £1,500
SOURCING FEE £5K

TOTAL COST / CASH BUYER £428,500

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

Sourcing fee £5,000
Payable at Exchange through solicitors i.e. after RICS survey
Fully refundable if legal issues with Title discovered that were previously undisclosed

Exchange
10%

SDLT
We are only providing a possibility that you may be able to reduce stamp duty but you must take professional legal and tax advice as there are several caveats to qualify.
As you are buying 8 flats in one block you MAY be able to mitigate part of the stamp duty by;
1. Claiming multiple dwellings relief - £400K / 8 = £50K but min 1% = £4K SDLT
2. 6 or more rule, therefore, pay commercial SDLT rates = £9,500

FINANCED BUYER. WE HAVE LENDERS IN PLACE READY TO FINANCE
PLEASE NOTE THE FINAL FINANCE OFFERED WILL BE BASED ON YOUR PERSONAL CIRCUMSTANCES
THE FIGURES PROVIDED ARE FOR TYPICAL LENDING ON THIS TYPE OF PROPERTY

Finance to purchase;

Mortgage 75% LTV at 4% Interest Only
Loan £300K. Monthly £1K PCM / £12K pa
Deposit £100,000

Money in;

£100,000Deposit
STAMP DUTY £ 22,000
LEGALS £1,500
SOURCING FEE £5K

TOTAL CASH IN £128,500

Cashflow;
Total Gross Income: £37,960 pa / £3,163 pcm/ £730 per week

Rental weekly Income per flat
3 x £90
4 x £85
1 x £120

Less:

10% (incl VAT) Management fee £3,796 per annum
Mortgage £12,000 per annum

Circa Net Cashflow £22,164 per annum
Circa Net Cashflow £1,847 per month

Yields based on actually invested funds:

9% Gross Cash Buyer
Based on invested £428,500 with gross income £37,960 per annum

5% Net Cash Buyer
Based on invested £428,500 with net income £22,164 per annum

30% Gross Finance Buyer
Based on invested £128,500 with gross income £37,960 per annum

17% Net Finance Buyer
Based on invested £128,500 with net income £22,164 per annum
This means you get your invested monies back before 6 years and thereafter produce an infinite return.
You also benefit from any potential capital appreciation over time

17% ROCE

Selling Agent - Vijay Sharma vijay.sharma@sourced.co 07738 092 129 You can contact me by WhatsApp, phone or email.

The Location

The property is conveniently located in close proximity to the Town Centre, within walking distance to Houndshill shopping centre where you will find an array of shopping facilities, amusements, restaurants as well as Tram, Train and Bus routes. Other benefits include the property sitting just a short distance from Pleasure Beach and Central Pier, the list goes on.

Blackpool confirms £100m town centre regeneration plans

Blackpool Council has confirmed the details of its £100m project to regenerate the seaside destination’s town centre.

In a statement, the local authority said it is committed to ‘focusing large-scale investment’ in a series of major schemes that will ‘breathe new life’ into the town centre over the next three years.

The projects include a £26m investment in a new, state-of-the-art conference centre next to the Winter Gardens which will open for business in August 2019 attracting visitors throughout the year.

There will also be a new £23m tram extension from the Promenade to Blackpool North Station, creating a link to the newly-electrified rail line and a new 144-bedroom, 4-star Holiday Inn and restaurant that will be sited at the North Station transport interchange on the site of the old Wilko building.

Also, a £7m Quality Corridors programme will see the refurbishment of Deansgate, Edward Street, Topping Street, Cookson Street, and Dickson Road.

The block is in an ideal location for Blackpool tourism located on the promenade with a sea view and short walk from all the major attractions. There is a large car park a 2-minute walk from the property for ample parking for Guests.

Regeneration and Investment Into Blackpool

Blackpool is a perfect location to invest in both residential and commercial property. It is an unsaturated improving market filled with opportunity for investment and a great return on that investment. The town has a population of circa 150,000 and the demand for rental residential property is very high. There are hundreds of millions of pounds in investment presently being made in Blackpool with regeneration schemes throughout the town, breathing new life into areas with the creation of new leisure sites, hotels, and restaurants. Large hotel chains such as Premier Inn, and Hilton is building a brand new state of the art hotels on the sea-fronted promenade. Hilton, in particular, has invested £30 million in their new 130 bedroom hotel, which is set to transform the street scene on the south shore coastline.

Another massive boost to the Blackpool economy is the fracking site that commenced operations in the summer of 2017 and which has brought over 15,000 jobs to Blackpool and Lancashire. There has never been a better time than now to invest in Blackpool.

Lytham Festival is held every summer on Lytham green, attracting thousands of tourists. Night prices will be up on these dates

Royal Lytham golf course is situated within close proximity to the property and there are regular professional golf championships played on this course which attracts golf fans from around the world.

BAE Systems Warton is a corporate employer just outside of Lytham (5 min car drive) this is a corporate outfit we will approach for long term stays.

Blackpool Pleasure beach attracts thousands to the area every single year. Perfect for Families

Sandcastle waterpark another great attraction for families

• Hampton by Hilton to open in Blackpool 2018 - Part of £31Million regeneration project
• Leisure Giant Whitbread proposed £10 Million Premier Inn Hotel Approved
• Cuadrilla Natural gas from UK shale creating thousands of jobs
• Persimmon Homes - Coastal Dunes Development
• Kensington's
• Redwood Point Blackpool landmark development
• £300m Chariots of the Gods Development in the centre of Blackpool
• Blackpool Central State of the Art Development

9-year Development which will be implemented in 3 phases starting in 2020

Average estimated value for a house in FY1

£

From the sold comparables below we believe you are purchasing at open market value

SOLD COMPARABLES; Within 1/4 mile of the first part of postcode. Sold in last 1 year. Type - Flat

2-bed flats;

£110,000 86 Lytham Road, Blackpool, Blackpool FY1 6DZ Sold Oct 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=73255838&sale=11034970&country=england

£90,000 Flat 8, Dawlish Court, 229, Devonshire Road, Blackpool FY2 0TJ Sold 17 Oct 2019
https://www.rightmove.co.uk/house-prices/detail.html?country=england&locationIdentifier=OUTCODE%5E915&searchLocation=FY1&propertyType=2&radius=0.25&year=1&referrer=listChangeCriteria
and
https://www.zoopla.co.uk/property-history/flat-8/dawlish-court/229-devonshire-road/bispham/blackpool/fy2-0tj/51152855

£87,500 Flat 12, Vine Court, Gosforth Road, Blackpool, Blackpool FY2 9UL Sold Oct 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=70635386&sale=11035111&country=england

£94,000 Flat 7, Argyll Court, Argyll Road, Blackpool, Blackpool FY2 9UF Sold Jun 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=68874334&sale=56359103&country=england

£88,000 Flat 8, Argyll Court, Argyll Road, Blackpool, Blackpool FY2 9UF Sold Sep 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=70989928&sale=10751764&country=england

£75,000 15 Brecon Close, Blackpool, Blackpool FY1 5AY Sold Aug 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=78538898&sale=56358815&country=england

£118,000 Flat 5, Whitegate Court, 195, Whitegate Drive, Blackpool FY3 9EW Sold Jul 2019
https://www.rightmove.co.uk/house-prices/detail.html?country=england&locationIdentifier=OUTCODE%5E915&searchLocation=FY1&propertyType=2&radius=0.25&year=1&referrer=listChangeCriteria
AND
https://www.zoopla.co.uk/property-history/flat-5/whitegate-court/195-whitegate-drive/blackpool/fy3-9ew/50199091

£88,000 Flat 6, Whitegate Court, 195, Whitegate Drive, Blackpool FY3 9EW Sold Jul 2019
https://www.rightmove.co.uk/house-prices/detail.html?country=england&locationIdentifier=OUTCODE%5E915&searchLocation=FY1&propertyType=2&radius=0.25&year=1&referrer=listChangeCriteria&index=25
AND
https://www.zoopla.co.uk/property-history/flat-6/whitegate-court/195-whitegate-drive/blackpool/fy3-9ew/47076783

£43,000 1f South Lawn, Blackpool, Blackpool FY4 4BN Sold Jul 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=58442724&sale=10197958&country=england

£60,000 Flat 1, Warbreck Court, Warbreck Hill Road, Blackpool, Blackpool FY2 9SR Sold Jun 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=64829926&sale=56359085&country=england

£52,000 Ground Floor Flat, 72 Holmfield Road, Blackpool, Blackpool FY2 9RT Sold Jun 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=82931912&sale=10197634&country=england

1-bed flats;

£52,000 Flat 5, Forrest Court, Pelham Avenue, Blackpool, Blackpool FY3 7HF Sold Oct 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=29377834&sale=11035129&country=england

£51,000 Flat 10, Grizedale Court, Forest Gate, Blackpool, Blackpool FY3 9AP Sold Oct 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=74718052&sale=10751872&country=england

£51,000 Flat 10, Grizedale Court, Forest Gate, Blackpool, Blackpool FY3 9AP Sold Oct 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=74718052&sale=10751872&country=england

£68,500 Flat 1, St Lukes Court, St Lukes Road, Blackpool, Blackpool FY4 2EQ Sold Jun 2019
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=53797839&sale=10197880&country=england