Investment
opportunity
Tenanted Buy to Let
Purchase of a property comprising two flats already tenanted.
Location
LONDON – UK
Total investment
596’400£
Market value
735’400£
Net rental income
28’607£
Strategy
This opportunity consists in the purchase of one 2 bed and one 3 bed adjacent flats. The property needs to undergo a complete refurbishment to a high, modern standard. The commercial unit will be converted into residential, accommodating 4 ensuite double bedrooms. The property will feature 4 double bedrooms with private bathroom, 4 double bedrooms with shared facilities and a communal kitchen area. Once completed the property can be refinanced up to 75% LTV or sold on the market in order to cash in the value uplift.
| Purchase | |
|---|---|
| BUYING PRICE | 561’000£ |
| TRANSACTION COSTS | 35’400£ |
| TOTAL INVESTMENT | 596’400£ |
| MARKET VALUE | 735’400£ |
| Rental income | |
|---|---|
| GROSS RENT | 37’200£ |
| MANAGEMENT COSTS | 4’464£ |
| MAINTENANCE | 4’129£ |
| NET INCOME | 28’607£ |
Purchase
BUYING PRICE: 561’000£
TRANSACTION COSTS: 35’400£
TOTAL INVESTMENT: 596’400£
MARKET VALUE: 735’400£
| Rental income | |
|---|---|
| GROSS RENT | 37’200£ |
| MANAGEMENT COSTS | 4’464£ |
| MAINTENANCE | 4’129£ |
| NET INCOME | 28’607£ |
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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