Investment
opportunity

investments in the UK

House in multiple occupation with refurbishment

Throughout refurbishment with space optimization and conversion for HMO rental model.

Invest
Boat in a river

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Location

WARRINGTON – UK

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Buying price

150’850£

Coins icon

Refurbishment

85’450£

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Total investment

236’300£

Building icon

End value

280’000£

Plant icon

Net rental income

30’312£

Strategy

This project consists in the purchase of an old, wrecked 5 bed terraced house with the objective of turning it into a 9 bed, all ensuite HMO, subject to planning consent. The property needs to undergo a complete strip out and a complete refurbishment to a high, modern standard.
The property will feature 9 double bedrooms with ensuite bathroom, plus a shared kitchen. There is also space for large communal areas, a feature that will make it stand out. Once completed the property can be refinanced up to 75% LTV or sold on the market in order to cash in the value uplift.

Refurbishment
BUYING PRICE 145’000£
TRANSACTION COSTS 5’850£
REFURBISHMENT 85’450£
TOTAL INVESTMENT 236’300£
END VALUE 280’000£
Rental income
GROSS RENT 54’000£
MANAGEMENT COSTS 6’480£
BILLS AND TAXES 12’888£
MAINTENANCE 4’320£
NET INCOME 30’312£

Refurbishment

BUYING PRICE: 145’000£
TRANSACTION COSTS: 5’850£
REFURBISHMENT: 85’450£
TOTAL INVESTMENT: 236’300£
END VALUE: 280’000 – 280’000£

Rental income
GROSS RENT 54’000£
MANAGEMENT COSTS 6’480£
BILLS AND TAXES 12’888£
MAINTENANCE 4’320£
NET INCOME 30’312£

Comparable properties

Property type Address Selling price
3 bed terraced Buy to Let 82 Manchester Road WA1 3AN 193’000£ (Feb 2019)
1 bed Buy to Let 18 Salisbury Street WA1 3AS 322’226£ (2019)
3 bed terraced Buy to Let 80 Manchester Road WA1 3AN 190’000£ (Sep 2018)
4 bed terraced Buy to Let 316 Manchester Road WA1 3RE 275’000£ (Aug 2018)

Comparable properties

Property type Selling price
3 bed terraced Buy to Let 193’000£ (Feb 2019)
1 bed Buy to Let 322’226£ (2019)
3 bed terraced Buy to Let 190’000£ (Sep 2018)
4 bed terraced Buy to Let 275’000£ (Aug 2018)

Location

Warrington is a large town in the North West of England in between Liverpool and Manchester, with excellent motorway and rail links to both. With a population of 210 000 Warrington is the largest town in the county of Cheshire. There is a large Unilever factory in Warrington where detergents are made. IKEA chose Warrington as the location for their first store when they came to the UK. The Omega Development Site close to the M62 on the northern edge of Warrington is a major business park to be developed in stages over the next 30 years. Warrington has also set out its plans to become a “New City” by looking to build up to 24,000 new homes and around 381 hectars of land over the next 20 years. Once the new homes and employment areas are built it is hoped that it will take the population of Warrington to around 350,000.
Warrington has strengths in the chemicals and plastics industry with key manufacturers, which include Perstorp, Solvay, PQ Silicas, Unilever, Colas and Perrite. Automotive related suppliers include: Clarcor (Baldwin Filters), Camcoat Performance Coatings, Krauss Maffei and K&N Filters. Engineering is notably strong, particularly in nuclear engineering. Key employers in this sector include Sellafield Ltd, Rolls- Royce, Nuvia, and AMEC. Due to its central location in the motorway network there is significant logistics and warehousing sector, including DHL. Warrington has the fourth highest jobs growth in the UK (at 4.5% – only bettered by Edinburgh, Brighton and London).

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