Latest Valuation
£63,000
ROCE
%
Location

Hands-Free Property Investment – 15.4% Net Yield

3 Bed House with Rental Guarantee
Guide Price
£63,000

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Key Features

  • 5 Years + Guaranteed Rental Returns
  • Bluechip Tenant
  • No Management Fees and No Voids
  • Hands-Free - Project Managed
  • 15.4% Net Yield Financed Buyer
  • Government-Backed Project

The Property

The layout briefly comprises entrance vestibule, entrance hallway with stairs to first floor, lounge with walk in bay window, separate dining room, remodeled kitchen with built in oven, hob and extractor.
To the first floor, there are 2 double bedrooms and a family bathroom, which comprises a walk-in shower cubicle, a panelled bath, a wash hand basin and WC.

To the second floor, there is a further bedroom, which would be ideal as a teenager's suite.

Externally, the property benefits from a palisade to the front and an enclosed rear yard.

We are working with a company that has won a contract with Mears Housing Management Limited, part of the Mears Group to find suitable properties throughout the UK to provide homes for some of the most vulnerable people in the UK. Mears work in partnership with Central and Local Government. With Mears working with the Home Office, they are seeking very specific types of properties to house asylum seekers for which the company we have partnered with have secured the mandate. This company has been working with Mears since June 2019 and with their predecessors SERCO since 2015. This property has been viewed and assessed by Mears and they have instructed the mandated company to bring the property up to their specifications.

Who are Mears?

• Trading since 1988
• Listed on London Stock Exchange
• The average rate of growth £32.2m per year since listed
• 16,000 + employees
• 2019 revenue of £869.8m
• Hold three 3 new contracts from the Home Office to provide accommodation and support for asylum seekers
• Experts in Housing Management, Maintenance, Building and Social Care looking after 13,000 people
• Regular property visits
• Maintenance services, including daily repairs response
• Although they don't pay a deposit, they hand back the property in the same condition it was handed to them
• Mears always only house 1 Family and the number of adults/children are restricted to HMO standards
• 6 months Break Date from start applies to Mears only, however, the new owner can sign for 3 or 5-year lease
• A full inventory is undertaken at the cost of Mears
• Mears covers wear & tear and general maintenance regardless of cost. However, it is the owner's responsibility for structural issues, the boiler, paving issues & fencing

Planning Information

N/A

The Plan

The Financials

Purchase Price £63,000

Renovation £10,600 EXC VAT
Furniture and Appliances £4,500 EXC VAT
Project Management Fee £3,000 EXC VAT
Sourcing fee £3,000 NO VAT

TOTAL COST / CASH BUYER £84,100

FINANCED BUYER;

WE HAVE LENDERS IN PLACE READY TO FINANCE
PLEASE NOTE THE FINAL FINANCE OFFERED WILL BE BASED ON YOUR PERSONAL CIRCUMSTANCES

30% Deposit. Loan £44,100 Deposit £18,900
4.99% Interest. Interest-only. Annual £2,201. Monthly £183

Money in;

£18,900 Deposit
£10,600 Renovation
£4,500 Furniture and Appliances
£3,000 Project Management Fee
£3,000 Sourcing fee

TOTAL CASH IN £40,000

Gross Rental per annum £8,557 per annum / £713 per month (slightly higher than standard market rental rates)
Contracted for 5 years. Mears contract with the Home Office runs for 10 years so they are likely to extend the lease

Less annual costs:
Mortgage £2,201
Buildings insurance £200 per annum (to include the occupancy of Asylum Seekers)
Ground Rent £0
Service Charge £0

Circa Net Cashflow £6,156 per annum
Circa Net Cashflow £513 per month

Please note - rent to be paid 30 days in arrears
You will also need to supply, if not already in place;
Certificates – Gas, EPC, Electrical & PAT test

Yields based on all invested funds:

10.17% Gross Cash Buyer
Based on invested £84,100 with gross income £8,557 per annum

7.32% Net Cash Buyer
Based on invested £84,100 with net income £6,156 per annum

21.39% Gross Financed Buyer
Based on invested £40,000.00 with gross income £8,557 per annum

15.39% Net Financed Buyer
Based on invested £40,000 with net income £6,156 per annum

15.39% ROCE Financed Buyer
Based on all monies invested

DEPOSIT TO RESERVE: £2,000
Fully refundable if surveyor downs value or discover undisclosed problems or undisclosed legal issues with Title and if seller withdraws

Sourcing fee: £3,000
Payable at Exchange through solicitors i.e. after RICS survey
Fully refundable if legal issues with Title discovered that were previously undisclosed or if seller withdraws

Exchange
10%

Additional costs
Legal fee (We can recommend solicitors if need be)
Valuation fee
SDLT

Sold As Seen
The property is sold as seen and all numbers provided are a guide only based on professional opinions and should not be solely relied upon. You must do your own due diligence and seek professional advice if necessary.

The Location

Great residential location with local amenities within walking distance.

Average estimated value for a house in TS26

£76,697

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