Latest Valuation
£
ROCE
33%
Location
Whoberley

Highly Profitable Trading Children’s Care Home with a 20 Year Lease

Purchase a hands-off children's care home at £555,000. Once purchased, this property will be leased to a care provider for 20 years at the pre-agreed sum of £57,600 pa.
Guide Price
£555,000

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Key Features

  • ROCE of 33%
  • Property prices have increased by 18.3%
  • Gross yield of 10.4%

The Property

Sourced are excited to present this highly profitable trading children's care home with a 20 year lease.

The property features well above average sized rooms and an abundance of storage areas with the ground floor offering a grand entrance hallway with doors leading off to a wooden floored lounge, a feature open fire place and doors opening out to the garden, a 25ft open kitchen/diner with space for a washing machine, tumble dryer, fridge/freezer and cooker. There are two double bedrooms with one of the bedrooms featuring en-suite facilities, a family bathroom and a study/additional bedroom.

The first floor offers a light and airy landing with sky lights and eaves storage with doors leading off to four double bedrooms with two of the bedrooms featuring wash hand basins and a family bathroom completes the first floor.

Outside is a driveway providing parking for up to several vehicles and to the rear is very large and impressive well established garden with a large patio area ideal for entertaining and access to a brick built garage.

The property requires a light refurbishment of approximately £15,000.

Selling Office: Alderley Edge

Planning Information

N/A

The Plan

Purchase a freehold children's care home at £555,000. Once purchased this property will be leased to a care provider for 20 years at the pre-agreed sum £57,600 per annum.

Conduct a light refurbishment of approximately £15,000.

Lease to a care provider for 20 years (with a 10 year break - then every 5 years) at the pre-agreed sum £57,600 per annum.

Gross yield of 10.4%.

ROCE of 33% per annum.

Based on a 70% LTV capital repayment commercial mortgage at 3.5% this care home achieves a ROCE of 33% per annum over 20 years.

Assuming an average 4% capital appreciation per annum, then after 20 years this property will deliver a ROCE of 819%.

This really is the ultimate, hands-off property investment opportunity.

*Sourced Alderley Edge has an exclusive arrangement with a finance broker who can provide mortgages on this asset class to experienced investor landlords*

The Financials

Purchase price: £555,000
Light refurb: £15,000
Sourcing fee: 2%
Rental income: £57,600 pa
ROCE: 33%
ROCE: 819% (after 20 years)
Gross yield: 10.4%

The Location

Situated in Whoberley, a Westerly suburb of Coventry, it is a highly sought after location:

- 8 minutes to Coventry Train station
- 9 minutes to Coventry City Centre
- 11 minutes to the M42 motorway
- 12 minutes to Birmingham Airport
- 15 minutes to the M6 Motorway

Average estimated value for a house in CV5 7AH

£

Since December 2018, the average detached property within 0.5 miles has sold for £270 per square foot.

Property prices have increased by 18.3% within the area since 2016.

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