Latest Valuation
£125,000
Yield
%
Selling Agent
Sourced Chester

30% NET ROCE – Licenced 5 Bed HMO

A ready-to-go HMO with a bricks and mortar price tag
Guide Price
£125,000

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Key Features

  • 5 bed Licenced HMO
  • 14% ROI
  • Buy to Let Investment
  • 30% NET ROCE
  • Close to Amenities
  • Off Market

The Property

This freehold terraced property is decorated to a high standard and has benefited from an income of £1,590 pcm when fully tenanted.

It's very rare to buy a turnkey HMO without having to pay a HMO premium. Deals like this don't come on to the market very often and this property comes ready-to-go, but with a bricks and mortar price tag.

It also has the potential for a slight refurbishment before placing new tenants in the property. This gives the new investor the opportunity to potentially increase the rent and the option to refinance and pull out their money.

No alterations needed, but if the new owner wanted higher rents, a light refurb would be required.

There is a high demand for good quality rental properties and HMOs in Crewe.

Sale fell through 28/04/20, so the current owner is looking for a quick sale.

This 5 bed ready-to-go licenced HMO is sold with vacant possession.
(Annual Cheshire East HMO licence)

Planning Information

N/A

The Plan

It's very rare to buy a turnkey HMO without having to pay a HMO premium. Deals like this don't come on to the market very often and this property comes ready-to-go, but with a bricks and mortar price tag.

It also has the potential for a slight refurbishment before placing new tenants in the property. This gives the new investor the opportunity to potentially increase the rent and the option to refinance and pull out their money.

The property has 2 bedrooms, 2 reception rooms and 2 bathrooms.

Purchase Price - £125,000
Mortgage LTV 75% - £93,750
Stamp Duty - £3,750
Legal Fees - £2,000
Deposit 25% - £31,250

Total cash to acquire the property - £37,000
37000 / 125000 = 29.6 x 100 = 30% ROCE

Net Income - £5,172
5172 / 37000 x 100 = 14% ROI

Sourcing Fee: 2%

The Location

Walthall Street in Crewe is in the North West region of England.

The postcode is within the Crewe South ward/electoral division, which is in the constituency of Crewe and Nantwich.

Average estimated value for a house in CW2

£207,875

The average price for property in Crewe stood at £207,875 in March 2020. This is a rise of 0.94% in the last three months (since December 2019) and rise of 1.81% since 12 months ago. In terms of property types, flats in Crewe sold for an average of £121,290 and terraced houses for £119,480.

The investment in a high-speed rail connection (HS2) will consolidate Cheshire East as one of the most connected areas in the UK and will support existing businesses, inward investment and job creation in and around Crewe.

The latest announcements place Crewe central to the plans; the route will pass through various parts of Cheshire East, with a Hub Station at Crewe and Rolling Stock Depot north of Crewe.