We sourced a large 4 bedroom through terraced property for investor, Mr Archbold. The property had been occupied by the same family for close to 100 years and had almost no updating in around 50 years (check out the photos below)! Mr Archbold was looking for his first HMO (House In Multiple Occupation) and due to it's size and location, the property had excellent HMO potential.
Because the property needed extensive refurbishment work, and there was equity in the property the purchase price was attractive. We packaged up the investment details and detailed investment numbers including market rent against all the costs including SDLT, legal fees, finance costs, an estimate of refurbishment costs, bills and council tax. This gives a relatively accurate yield and ROI on capital investment (for purchase with and without mortgage) which Mr Archbold was able to make quick investment decisions.
We also provided advice on planning, Article 4, and licensing as the property was to be let as a 5 bed to 5 professional sharing tenants. We then negotiated an offer on behalf of Mr Archbold and agreed the sale.
C4 planning permission was obtained to enable the property to be used as a HMO, even though the property lies within Leeds Article 4 area. A HMO license was also issued by Leeds City Council.
"I've received nothing but first class service from Dwell. From the outset they have guided me in choosing an appropriate strategy, which property to buy, how to refurb to get the best returns and then they filled the place quickly. All with a smile and a professional service", said Mr Archbold.
Mr Archbold now gets an amazing return on investment and will continue to do so. not only that, the property is managed by Dwell Leeds, giving him a great hands-off and hassle-free passive investment. If he decides to sell, significant value has been added through refurbishment but also in achieving planning permission and in obtaining a HMO license. This would, if he chooses, enable Mr Archbold to sell the property to another investor for a premium price.
Check out the carousel at the top of the page for the before and after photos - wowsers, what a transformation!