Latest Valuation
£
ROCE
16.15%
Location
North West

5 Bed Licenced HMO with a 10.6% Yield

A high cash-flowing fully licenced 5-bed all en-suite HMO in an area with very strong student demand giving a 10.6% yield.
Guide Price
£280,000

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Key Features

  • 10.63% yield
  • 16.15% ROCE
  • £29,760 gross income
  • £22,129 NET income
  • Close to university
  • Already tenanted next academic year

The Property

We are direct to vendor for this off-market fully licenced 5 bedroom all en-suite HMO in an area of very strong demand from students.

Property Details:

- 5 Bedrooms – 4 rooms have double beds and 1 has a single bed, all rooms are en-suite – comprising of shower, toilet and sink
- Kitchen with fridge/freezer, hob, oven, toaster, kettle, iron/ironing board and washing machine
- Separate toilet
- Rear garden
- 2 parking permits
- Gas central heating

Running costs include:

- Utilities
- Internet
- Agent Fees
- Insurance

The property is currently fully let to students for the remainder of this academic year and the whole of the next academic year. This means it is fully let until July 2022.

THE NUMBERS:

Purchase Price: £280,000

***Income***

Rent: £29,760 rising to £30,336 in the next academic year

***Purchase Costs***

Deposit: £70,000
Conveyancing: £1,000
Stamp Duty: £8,400
Sourcing Fee: £5,600

***Operating Costs***

Utilities: £4,800
Insurance: £335
Agent fees: £2,496
Finance at 4%: £8,400

***Key Metrics***

Gross yield: 10.63% rising to 10.83%
NET yield: 7.90% rising to 8.09%
ROCE if financed: 16.15% rising to 16.76%
NET income (cash purchase): £22,129.00 rising to £22,647.40
NET income (financed): £13,729.00 rising to £14,247.40

Selling office: Sourced Southport

Planning Information

N/A

The Plan

Buy and hold as an HMO to benefit from the income.

The Location

Ormskirk is a market town in West Lancashire, England, 13 miles north of Liverpool, 11 miles northwest of St Helens, 9 miles southeast of Southport and 18 miles southwest of Preston. Ormskirk is known for its gingerbread.

It's very well connected with direct train links to both Liverpool and Preston and only 10 minutes from the M58 motorway which links straight to the M6 north and south.

Edge Hill University is based on an attractive, award-winning 160-acre campus in Lancashire, close to Liverpool and Manchester. The institution has been providing higher education since 1885, with a mission to create opportunity from knowledge.

The institution’s significant success in achieving its mission is recognized by a range of awards and high rankings for teaching, student experience, accommodation and more. Edge Hill is ranked as Gold in the Teaching Excellence Framework (TEF), the government’s evaluation of excellence in teaching quality, learning environment and student outcomes. The University is also one of the select few to have held the coveted UK University of the Year title, awarded by Times Higher Education (2014/15).

Website - https://www.edgehill.ac.uk/

The university is Ormskirk strongest selling point which creates huge demand for this type of property.

Average estimated value for a house in L39 4QE

£

Current average value: £283,367

Last 12 months value change: +£5,945

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