We believe this property works best with a mortgage at 75% LTV or less based on a mortgage interest rate of 5%.
The property is a fantastic longstanding HMO with an opportunity to add value and increase rent returns through a small program of refurbishment works. The six-bedroom, three-bathroom house is located on one of Hull’s most popular high streets and is positioned just to the North of the other most popular streets – Princes Avenue.
Based on 75% LTV with a 5% interest rate and taking buying costs into account (including the buyers fee) the projected cashflow of over £888 per month and ROI of 15.2% present a healthy and appealing investment proposition.
The property’s spacious and versatile accommodation will appeal to any demographic of tenant but it has historically been let to students and has been designed with students in mind. With the spacious rooms offering dedicated workspaces, a fully equipped partially open plan kitchen living and dining space. Which is not only ideal for its primary purpose but also for housemates to socialise and get the most out of their time as students at Hull University.
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 shared accommodation includes – a bright entrance hall with lovely high ceilings and neutral decor which is carried throughout the property. To the front of the property, there is a spacious living room with a large bay window. The middle reception room is now good-sized double bedroom. At the end of the hallway is a door through to the modern open plan kitchen and dining room with appliances benefitting from two further large bay windows. To the rear of the kitchen, there is a spacious lobby leading to a ground-floor shower room.
There is access to the large rear courtyard from the kitchen. The courtyard is hard standing which is low maintenance and provides an ideal entertaining space for tenants.
To the first floor there are three well proportioned bedrooms, two of which benefit from separate basins. There is also a modern spacious recently refitted shower room, as well as a second shower room.
To the second floor there are two further bedrooms, one of which benefits from a separate basin.
All bedrooms are decorated in whites and neutral tones.
Externally the plot is approximately in 0.04 acres in total, and has a small enclosed forecourt to the front, and an enclosed yard to the rear.
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 has also been fitted with emergency lighting and call points (emergency break glass points).
The property is well located with Princes Avenue, Newland Avenue, and Beverley Road on the doorstep. 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 also within walking distance 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 depending 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 – payable in two parts:
– A non-refundable reservation fee of £1,500 plus VAT
– The balance is due upon legal completion (which is collected and paid by the buyers solicitor)
