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Seller Type: Agency, Property Type: House, Number Of Bedrooms: 5

Based on our research, we believe that Article 4 is likely to be introduced to North Yorkshire within the next 12-18 months.

In our experience working in similar areas, the introduction of Article 4 dramatically increases the value of compliant HMOs, that have already been converted. In many cases, the uplift in value, as a result of Article 4, can be in excess of £50,000 depending on the size of the property.

This presents you with a fantastic opportunity to invest in the area, whilst we still have time to complete at least one project for you.

For more information on our available projects or the effects of Article 4, please do not hesitate to contact us on.

THE PROPERTY
• A sought-after area with easy access to the University, local amenities and the town centre. Only a 12-minute walk to the University campus and the Student Union bars. The town centre is just a 15-minute walk away.

• Spacious enough to enable a 5-bedroom multi let: all with double rooms and 5 bathrooms, spacious communal kitchen and separate living area.

• Teesside University has over 20,000 students and has a lively student community
ALL RETURNS WHERE APPROPRIATE ARE CALCULATED USING UPDATED HIGHER FORECASTED MORTGAGE RATES. WE ARE ALSO USING CONSERVATIVE PROJECTIONS FOR THE REFINANCE VALAUTIONS.
INVESTMENT OPPORTUNITY

Ayresome Park road - Financial Breakdown – 5 Bedroom – 5 Bathrooms

Purchase Price: £98,000.00
Deposit : £28,689.50
Conversion/Build: £58,160.80* approx. (subject to further onsite visits)
Set up costs/ Design & Build Fees - £14,750.00
Legals Estimate - £1,400.00
Stamp duty - £2,940.00
Survey - £650.00
Furniture and flooring packs can be purchased at an additional cost - £10,256.49

Total Project Cost: £186,157.29
Total cash outlay - £116,846.79

Projected Rental Income: £110.00PPPW x 5 net of bills (water, gas, electricity) = £28,600.00 (This is projected rent that allows for a increased energy and increased mortgage interest rates)
Management: £4,212 including VAT- (10% fully managed)
Mortgage (6 Months) - £1,837.50

TRUE NET INCOME: £22,550.50 per annum
TRUE NET RETURNS : 19.29%

NET RETURN ON INVESTMENT AFTER REFINANCE: 35.57%

BASED ON A REFINANCE VALUATION OF £185,000 WE CAN RELEASE APPROXIMATLEY £148,000.00 BY RE-MORTGAGING AFTER 6 MONTHS. AT THIS STAGE, YOU WILL HAVE AROUND £42,346.79 LEFT IN THE DEAL AND AFTER DEDUCTING THE NEW, INCREASED MORTGAGE INTEREST, YOUR NET INCOME WILL BE AROUND £15,064.00 PER ANNUM GIVING YOU A NET RETURN ON CASH INVESTED OF 35.57%!