Latest Valuation
£180,000
ROCE
18%
Selling Agent
Sourced Warrington

Hands-Off – Pub Conversion Opportunity For 2 HMOs

The hands-free conversion opportunity has no stamp duty and planning approved to be converted to 2 HMOs.
Guide Price
£150,000

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Key Features

  • Planning permission granted
  • Potential hands-free investment
  • No stamp duty
  • High potential returns
  • No Article 4 area
  • Close to town centre

The Property

This is an excellent chance to purchase a large former pub conversion with a huge ROCE of 18%. Cash buyers only.

This detached property requiring conversion, provides approximate 190m2 of space, with approximately 110m2 on the ground floor and 80m2 on the first.

The numbers are as follows:

Purchase price: £150,000
Sourcing fee: £10,000
Refurbishment: £160,000
Furnishings: £15,000
10% project management fee: £17,500

All cash return: £354,000
Gross rents: £4,050 pcm / £48,600 pa
Management at 12% + VAT: (can use own agent) £583 pm / £7,320 pa
Bills etc: £610 pcm / £7,320 pa
10% for voids and maintenance

NET: £29,422
ROCE: 8.3%
Commercial valuation and mortgage (subject to valuation and mortgage)
12% Yield: £405,000 Valuation
Cash left in : £53,250
NET profit: £15,753

14% yield = £347,142 valuation
Cash left in: £96,643
NET Profit: £17,706
ROCE: 18%

Planning Information

Planning permission was granted on 27/08/2020 by Bolton Council for 2 HMOs.

The Plan

Cash buyers only.

This large former pub has had planning approved to be converted to 2 HMOs , a 5 bed on the ground and a 4 bed on the first floor, all over 10m2 rooms plus en-suites.

Hands free investment opportunity to refurbish the property to the target market, which could either be for young professionals/key workers or for the care market.

The Director of Sourced Warrington has extensive experience in providing hands free HMOs and can provide a full service if required.

The GDV of £405,000 is based on rents of £450 pm and a 12% gross yield. The ROCE of 18% is based on a commercial mortgage with £56,000 approximately left in the deal.

The Financials:

Purchase price: £150,000
Current value: £180,000
GDV: £405,000
Conversion cost: £160,000
Sourcing fee: £10,000
Rental income: £48,600 pa
Profit: £29,422
Gross yield: 12%
ROCE: 18%

The Location

The property is close to Bolton Town Centre. Bolton is part of Greater Manchester and is 10 miles (16 km) northwest of Manchester. It is surrounded by several smaller towns and villages that together form the Metropolitan Borough of Bolton.

The town of Bolton has a population of approximately 139,403, whilst the wider metropolitan borough has a population of 262,400 and has a range of shopping centres, cinemas and amenities.

Average estimated value for a house in

£164,000

Average room rents are in the range of £450-550 in the area, with 90 rooms for rent currently on Spareroom and 100 people looking.

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