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Location
North West

9 Bed Part Licenced HMO | £45,360 income | 9.43% NET Yield

A cash-only purchase, an incredible opportunity before it goes into the auction. The plan is to buy and hold this 9 bed part licenced HMO.
Guide Price
£375,000

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Key Features

  • £45,360 income
  • 9.45% NET yield
  • Fully tenanted
  • £35,350.80 NET income
  • Very strong student demand area

The Property

CASH INVESTORS ONLY

An incredible opportunity to buy a fully tenanted 9 bed HMO before it goes into the auction, giving you a chance to avoid competition with other investors by getting in before they do.

- Current income is £45,360
- Potential to increase the income to £51,840
- Student Accommodation Investment
- Prominent position
- 9 Bedrooms, Four Bathrooms & Separate WC
- Parking to front
- EPC Rating: B

All rooms are let for this academic year and the next at £105 per week, per room.

There is the potential to increase this to £120 per week per room after the next academic year.

The current owners reduced the rent they were charging from £120 to £105 due to COVID and they wanted to ensure it was fully tenanted, however, £120 per week per room should be very achievable going forward after speaking with a local managing agent.

THE NUMBERS:

Purchase Price: £375,000

***Income***

Rent: £45,360

***Purchase Costs***

Conveyancing: £1,000.00
Stamp Duty @3%: £11,250.00
Sourcing Fee @2%: £7,500.00

***Operating Costs***

Utilities: £3,500.00
Insurance: £1,066.00
Agent Fees @ 10% +VAT: £5,443.20

***Key Metrics***

GROSS Yield: 12.1%
NET Yield: 9.45%
NET Income (Cash Purchase): £35,350.80

Selling office: Sourced Southport

Planning Information

N/A

The Plan

Buy and hold for great cashflow.

The financials:
▪ Purchase price: £375,000
▪ Sourcing fee: 2%
▪ GROSS yield: 12.1%
▪ NET income (cash purchase): £35,350.80

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 recognised 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 3LY

£

Current average value: £283,367

Last 12 months value change: +£5,945

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