Latest Valuation
£175,000
Yield
14%
Selling Agent
Sourced Warrington

Reserved

82% ROCE – HMO Conversion Opportunity with Planning

Planning permission granted for 3 x HMOs and a commercial unit
Guide Price
£175,000

Share this page

Message Agent





Key Features

  • Planning Permission Granted
  • Town Centre Location
  • Great Investment
  • Plans Already Drawn
  • 82% ROCE

The Property

Sourced are proud to present this large, 4 storey, town centre property, in Leigh, Lancashire with planning permission granted for 3 x HMOs (2 x 5 beds and 1 x 4 bed), all rooms over 10m2 and with en-suites plus a ground floor office/shop unit.

A comparable town centre HMO has been letting rooms at £375 pm all inclusive and the £450,000 GDV has been calculated assuming a 14% gross yield, without the retail unit.

Ground floor: retail unit 13.5 m2 plus toilet / sink. 5 bed HMO , average bedroom size of 10.5m2 + 2.3m2 en suite and 15.2m2 kitchen / diner.
First floor: 5 bed HMO, average bedroom size of 12.5m2 + 2.5 m2 en suite and 18m2 kitchen / diner.
Second and third floor: 4 bed HMO , average bedroom size of 10.9m2 + 2.2 m2 en suite and 12.2m2 kitchen / diner.

Planning Information

Planning was granted on the 5/12/18 by Wigan Council, case reference A/18/85925/CU.

The Plan

The plan for this property is to create 3 good quality HMOs, to provide 14 new homes for key workers living in the area, as well as a retail unit.

Leigh is 7.7 miles (12 km) southeast of Wigan and 9.5 miles (15.3 km) west of Manchester, there are plenty of local amenities including a cinema, rugby league stadium, retail parks and Sainsburys, Asda and Morrisons stores.

GDV: £450,000
Conversion cost: £150,000
Rental income: £63,000 pa
Profit: £125,000
Sourcing fee: £10,000

The Location

The property is in the town centre of Leigh, part of Greater Manchester and in the Metropolitan Borough of Wigan.

Leigh is 7.7 miles (12 km) southeast of Wigan and 9.5 miles (15.3 km) west of Manchester, there are plenty of local amenities including a cinema, rugby league stadium, retail parks and Sainsburys, Asda and Morrisons stores.

Average estimated value for a house in WN7

£142,200

A comparable town centre HMO has been letting rooms at £375 pm all inclusive and the £450,000 GDV has been calculated assuming a 14% gross yield, without the retail unit.

Properties in WN7 had an overall average price of £142,119 over the last year.

The majority of sales in WN7 during the last year were terraced properties, selling for an average price of £103,669. Semi-detached properties sold for an average of £152,837, with detached properties fetching £231,805.

Overall, sold prices in WN7 over the last year were 10% up on the previous year and 12% up on the 2017 peak of £126,522.