Kingsway, Stoke-on-Trent
The building was tenanted commercial/retail units with empty office space above.
The retail space was retained and is still running, while the offices upstairs were transformed into 11 en suite rooms. Titles was split accordingly to maximise the gross development value.
Finished Result
The investment…
Purchase price £235,000
Stamp duty £3,495
Professional fees £29,950
Cost of refurbishment £239,000
incl 10% contingency
Total costs £507,445
incl returns
GDV/DUV lower estimate £655,833 ( 75% remortgage at £491,875 gives us the majority of our entire investment back, leaving £56,166 )
Income going forward…
Residential income £6,246.25 PCM ( £74,955 PA incl. 5% void rate )
less: Interest only remortgage & Running costs £2,989.90 PCM ( £35,878.8 PA )
Total net income £3,256.35 PCM / c. £39,076.2 PA
Return on investment…
With £56,166 of our investment left in the property after refinancing, this net annual income represents a return on investment of 70% in the first year. In a nutshell, the remaining amount is repaid in around 17 months, and we’re left with an income-producing asset for life.
Over a ten year period the property will produce around £390,762.34 in income which can be reinvested into future purchases.
If you’re interested in becoming involved with this opportunity, with the ability to earn excellent fixed returns, please contact us.