We believe this property works best with a mortgage at 75% LTV or less based on a mortgage interest rate of 5%.
A fantastic opportunity to acquire a student HMO with the potential to add value. The six bedroom, two bathroom house is located just off of Cottingham Road and is positioned within a prime location for a student HMO – the University is only a 2 minute walk away.
Based on 75% LTV with a 5% interest rate (taking buying costs into account, including the buyers fee) the projected cashflow of over £950.53 per month and ROI of over 12.8%, along with the strong growth potential in this location present a very healthy and appealing investment proposition.
The property’s spacious and versatile accommodation will appeal to any demographic of tenant but due to it being incredibly close to the University it has historically been let to students and has been designed with students in mind. The spacious bedrooms offer dedicated work spaces and there is a fully equipped kitchen with partially separated living room with dining space.
The property is fully double glazed, including the front and back door and is heated by a gas combi-boiler which has a remote heating control.
The property is bright and spacious throughout, it benefits from large bay windows, high ceilings and ornate coving. Downstairs accommodation comprises a bright entrance hall, a modern kitchen with appliances, separate living dining room and a downstairs shower room off of the kitchen. The front and middle reception rooms are now spacious bedrooms.
The living space is furnished with sofas, dining table and chairs and a large wall mounted TV. The space flows through to the modern kitchen which is well laid out with the sink position in front of the window, two ovens and hobs, American style freestanding side by side fridge freezer, integrated dishwasher and freestanding washing machine.
The kitchen also provides access the rear by means of a solid wood and partial glazed side door.
To the first floor is a further bathroom with shower over bath and four further well-proportioned double bedrooms. All bedrooms are decorated in white tones, and three benefit from a wash hand basin with vanity unit below.
Externally there are no fixed boundaries and the area has been gravelled to provide off street parking. The plot extends to approximately 0.041 acres.
The property would benefit from undergoing a programme of refurbishment to add value to the property and increase rental returns. We have provided a breakdown by means of a link on our ‘Background and Our Advice” page in our brochure.
The current owner holds an HMO licence for the property and has confirmed that the property met with all of the conditions of the licence. Please note that while a HMO licence is valid for 5 years, they are not transferrable and follow the person not the property – a new licence is required upon transfer of ownership.
The property meets with current fire regulation requirements having a Grade D mains interlinked fire alarm system installed, fire doors throughout and a fire blanket in the kitchen.
The property well located just off of Cottingham Road, virtually a stones throw from the University campus. The ever popular Princes Avenue, Newland Avenue and Beverley Road are a short walk away. These roads offer a range of amenities including, numerous highly rated cafes and restaurants; independent shops, Lloyds Bank, Tesco, Sainsburys and a post office.
The property is within walking distance (2 minutes) of the University of Hull, the excellent location means that the property has versatility allowing it to be easily switched between student and working tenants dependent on market demand and owner preference.
The property sits within an Article 4 area which prevents the conversion of C3 (residential dwellings) into C4 HMO’s without planning permission, due to the cap on new supply the demand for these properties has gone up significantly and as such the values are strong. This property was converted prior to the implementation of the A4 and the seller can provide supporting evidence.
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Buyers premium of 3% + VAT is payable in two parts:
– A non-refundable reservation fee of 25% plus VAT or £1,500 plus VAT (whichever is greater)
– The balance is due upon legal completion (which is collected and paid by the buyers solicitor)
