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Selling Agent
Sourced Derby

21.3% ROCE – Tenanted 3 Bed Buy-to-Let Property

The investment opportunity consists of a lounge, a dining room, a kitchen, 3 large bedrooms and a bathroom.
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Key Features

  • 3 bed mid-terraced
  • Recently refurbished
  • UPVC double glazed
  • Gas central heating
  • 21.3% ROCI

The Property

This is a fantastic refurbished property, located in County Durham, with an incredible ROCE of 21.3%.

The property consists of:
• Lounge
• Dining room
• Kitchen
• 3 large bedrooms
• Bathroom
• Recently refurbished
• Gas central heating
• UPVC double-glazing
• Freehold
• 21.3% ROCI (see illustration)

The current tenant has resided in the property since June 2020 on a rent of £500 pcm.

This produces a gross yield of 8% based on a purchase price of £75,000. If purchased with a BTL mortgage with a 25% deposit, you could achieve 21.3% ROCI inclusive of SDLT and sourcing fee.
The landlord has owned the property in approximately 10 years and is selling in order to concentrate on property development.

Sourcing fee = £3,000

Stamp duty estimate prior to 31st March 2021– £2,250 (3% for additional property if applicable).

Any interested parties should conduct their own due diligence.

Yield and return on capital invested is based on the following illustration:

Purchase price: £75,000:
Gross yield figure of 8% equates to £6000 annual rent divided by purchase price of £75,000
ROCI illustration is based on:
Purchase price: £75000 at 25% deposit = £18,750 + £2,250 (SDLT) + £3,000 (sourcing fee) = £24,000
Annual rent: £6,000 pa
Mortgage 2 year discount at 1.54% (Leeds) £900 pa
£6,000 - £900 = £5,100
£5,100 divided by £24,000 = 21.3% ROCI

Planning Information


The Plan

Off-market 3 bed mid-terraced property available to purchase.

The Financials:

Purchase price: £75,000
Current value: £90,000
Sourcing fee: £3,000
Rental income: £6,000 pa
ROCE: 21.3%
Gross yield: 8%

The Location

Bishop Auckland, County Durham, England is located about 12 miles (19 km) northwest of Darlington and 12 miles (19 km) southwest of Durham. Bishop Auckland has a population circa 25,000 and has excellent access being served by main trunk roads and rail links.

Local landmarks include Auckland Castle's Gatehouse, Binchester Roman Fort, Newton Cap Viaduct, Escomb Saxon Church, St Andrew's Parish Church and St Helen's Church.
The town has a number of Grade I listed buildings.

The grounds of Auckland Castle alone contain seven such structures. Auckland Castle also provides the setting for Lewis Carroll's story "A Legend of Scotland".

The Castle re-opened in early November 2019, after a multi-million pound restoration.

Additional work continued at and near the castle to make to town a significant tourist attraction. Reports suggests that the revival of the area, dubbed the Auckland Project, will eventually cost a total of about £150,000,000.

Average estimated value for a house in DL14 6BL