Front elevation
Latest Valuation
£45,000
ROCE
%
Selling Agent
Sourced Uxbridge

25% BMV – Recently Refurbished Flat in Trockley

Guaranteed 5 Year Rent
Guide Price
£33,500

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Key Features

  • 25% BMV
  • Guaranteed 5 year rent
  • Bluechip Tenant
  • Hands-free
  • Turnkey investment
  • 16% Net Financed Buyer

The Property

First floor flat situated on Tillmouth Park Road within Throckley. Recently refurbished - this property is immaculate throughout and must be viewed to appreciate the accommodation on offer. The property briefly comprises of entrance hallway, three bedrooms, living room, newly fitted kitchen, newly fitted bathroom WC, gas central heating and double glazing, communal gardens.

• Three Bedrooms
• Living Room
• Fitted Kitchen
• Bathroom Wc
• Gas Central Heating
• Double Glazing
• Chain Free

Renovation and 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 and Safety Legislation, Disability Discrimination Act 1995 and the Equality Act 2010.

Each property is set up to House in Multiple Occupation standards, whether a licence is required or not.

Benefits of working with the private company holding the mandate with Mears;
• Negotiated Lease Contract with Government-backed blue-chip tenant
• Negotiated Below market value properties
• Turn key investment – Hands-free
• Purchase and setup term managed
• Negotiated 3-5 years pre-agreed Guaranteed Rental term (likely 10 years due to Mears mandate with the Home Office)
• Arrange local tradesmen and project manage refurb & delivery/installation of furniture & appliances
• No management fees
• No maintenance fees
• No Voids
• Negotiated pre-agreed rental increases with inflation
• Seek properties with High yields
• Hassle-free
• All utility bills and council tax paid by the tenant
• Only house families rather than individual rooms
• Return the property in the same condition
• Can sell property in future with no fees

The Financials;

Fixed Asking Price £33,500
Open Market Value £45,000
(sold comparables & currently for sale)

Legal Cost £1,500
Renovation £4,500
Furniture and Appliances £3,000
Project Management Fee £2,500
Sourcing fee £3,000
SDLT £0

TOTAL COST / CASH BUYER £48,000

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 £23,450. Deposit £10,050
7.99% Interest. Interest-only. Annual £1,874. Monthly £156

Money in;

£10,050 Deposit
£1,500 Legal Cost
£4,500 Renovation
£3,000 Furniture and Appliances
£2,500 Project Management Fee
£3,000 Sourcing fee

TOTAL CASH IN £24,550

Cashflow;
Gross Rental per annum £6,582 per annum / £549 per month (slightly higher than standard rental rates £537)
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 £1,874
Fees to Your Homes Newcastle (freeholder) for maintenance/management £538
Buildings insurance £200 per annum (to include the occupancy of Asylum Seekers)

Circa Net Cashflow £3,970 per annum
Circa Net Cashflow £331 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:

13.7% Gross Cash Buyer
Based on invested £48,000 with gross income £6,582 per annum

12.2% Net Cash Buyer
Based on invested £48,000 with net income £5,844 per annum

27% Gross Financed Buyer
Based on invested £24,550 with gross income £6,582 per annum

16% Net Financed Buyer
Based on invested £24,550 with net income £3,970 per annum

12% ROCE Cash Buyer
Based on all monies invested

16% ROCE Financed Buyer
Based on all monies invested

12.2% ROCE

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

SDLT
Below the threshold so doesn’t apply

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

TOTAL CASH IN £24,550

Cashflow;
Gross Rental per annum £6,582 per annum / £549 per month (slightly higher than standard rental rates £537)
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 £1,874
Fees to Your Homes Newcastle (freeholder) for maintenance/management £538
Buildings insurance £200 per annum (to include the occupancy of Asylum Seekers)

Circa Net Cashflow £3,970 per annum
Circa Net Cashflow £331 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

The Location

Tillmouth Park Road in Throckley NE15 comprises 54 homes. Of these properties, 100 per cent are residential which means there is no commercial property in Tillmouth Park Road.

Local Amenities;

Wylam 2.5 miles
Blaydon 2.6 miles
Throckley Primary School 0.2 miles
Walbottle Campus 0.7 miles

Average estimated value for a house in NE15

£45,000

Judging by below we would say the open market value to be £45,000

SOLD COMPARABLES;

Rightmove Criteria: First part of postcode. Within 1/4 mile. Sold in last 1 year. Type - Flat

£46,500 Sold Sep 2019 49 Swinley Gardens, Newcastle Upon Tyne, Tyne And Wear NE15 7HX
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=59386560&sale=10814620&country=england

Currently on the market for sale;

£49,950 Swinley Gardens, Newcastle Upon Tyne, NE15
https://www.rightmove.co.uk/property-for-sale/property-39585678.html

£50,000 Howdene Road, Denton Burn, Newcastle upon Tyne, NE15
https://www.rightmove.co.uk/property-for-sale/property-88176542.html

All of the 54 homes on Tillmouth Park Road are flats (including apartments and maisonettes).

Last 5 years postcode house price growth 12.40%

Sale activity
The average estimated value for a flat in NE15: £82,829 Price increase £896 (up 1.094%) Over the last 12 months

In the last 12 months, Average sale price £76,500
Properties sold: 24

The average rent for a 3 bedroom flat in NE15 is currently: £537 PCM