front elevation
Latest Valuation
£195,000
ROCE
%
Location
Dolwyddelan

20% BMV Serviced Accommodation Opportunity in Snowdonia

Opportunity to add further value
Guide Price
£155,000

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Key Features

  • Annual ROCE of 41%
  • 20% Below market value
  • £27,500 income pa
  • 17% yield
  • Initial investment returned within just 3 years
  • Opportunity to add further value

The Property

Sourced present this beautiful 4 bed semi-detached stone property with a large garden, priced 20% below market value. The property is in an excellent condition and only in need of a light cosmetic update to make it suitable for a holiday let. We are dealing directly with the vendor and they are looking for offers in excess of £155,000. A similar but slightly smaller property sold on the same street in 2018 for £175,000 and the highest price for a 3 bed on the street was achieved in 2019 at a price of £290,000. The property has been recently valued at £195,000, making this a fantastic opportunity to purchase at below market value.

The plan for this property is to turn it into a holiday let by providing a light cosmetic update and furnishings. The property is priced below market value and we believe the property will be able to be refinanced at a valuation of around £195,000, leaving around £33,000 in the property. The yearly ROCE is 41%, meaning that the £33,000 left in the deal will be recouped in just 2 and a half years!

There is also opportunity to add further value by extending the property as there is ample space to the side of the home. This would allow for a higher revaluation and potentially, allowing more money to be pulled out initially.

The Financials:
Valuation: £195,000
Purchase Price: £155,000
Refurbishment: £3,000
Stamp Duty: £5,500
Additional Costs: £2,000
Sourcing Fee: £4,000
Rental Income: £27,504 pa
ROCE: 41% pa

The property comprises of a living room, kitchen, dining room/4th bedroom, utility room, family bathroom and 3 bedrooms. The property benefits from beautiful views of the countryside and conveniently located close to the village shop, pub and restaurant.

Planning Information

N/A

The Plan

The plan for this property is to turn it into a holiday let by providing a light cosmetic update and furnishings. The property is priced below market value and we believe the property will be able to be refinanced at a valuation of around £195,000, leaving around £33,000 in the property. The yearly ROCE is 41%, meaning that the £33,000 left in the deal will be recouped in less than 3 years!

There is also opportunity to add further value by extending the property as there is ample space to the side of the home. This would allow for a higher revaluation and potentially, allowing more money to be pulled out initially.

The Location

This semi-detached stone holiday cottage is on the edge of the attractive village of Dolwyddelan in the heart of the Snowdonia National Park. It is surrounded by wonderful scenic countryside with mountains, valleys, lakes and waterfalls, creating a perfect spot for all outdoor pursuits, with many great walking opportunities from the door to explore the surrounding area. Within 5 miles is Blaenau Ffestiniog, now becoming the adventure capital of North Wales, thanks to its undergound trampolining at Bounce Below, ZipWorld, one of the world’s longest zip wires and the Stiniog downhill mountain bike trails.

Blaenau Ffestiniog also provides the start of the Ffestiniog railway, which runs through the mountains to Porthmadog, where the famous Italianate village of Portmeirion lies. The lovely village of Betws-y-Coed provides a choice of shopping and restaurants. The Surf Snowdonia is just 15 miles away with one of the world’s first inland surf centres. Also in the area, are the well known Swallow and Conwy Falls, as well as Lake Bala and Llandudno with its Victorian promenade and shops. Also close by, are several golf courses and riding stables. Dolwyddelan railway station is 700 yards away. Shop and pub 150 yards, restaurant 200 yards.

Average estimated value for a house in LL25

£232,503

The property market in this area is stable at present with growth potential in the future. The location is perfect for a holiday let and the area currently has an average occupancy rate of 74%.

Comparable Sales Evidence-

£175,000 Semi-Detached, Freehold, Residential 04 Oct 2018 3 bedrooms

£290,000 Semi-Detached, Freehold, Residential 10 May 2019 3 bedrooms

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