We believe this property works best with a mortgage at 75% LTV or less based on a mortgage interest rate of 5%.
An interesting opportunity to acquire a great value HMO in a popular location just a ten minute walk to the University of Hull. The property is a four bedroom, one bathroom house located on Worthing Street, off Clough Road & Beverley Road. Beverley Road provides a variety of local amenities, such as convenience shops. pubs and a large supermarket. There are currently tenants in place on AST agreements. Three of the tenancies are periodic (Room 2, 3 and 4). Room 1’s tenancy is currently in a six month fixed term.
Based on 75% LTV with a 5% interest rate and taking buying costs into account (including the buyers fee) the projected cashflow of over £528 per month and ROI of 14.7% present a healthy and appealing investment proposition.
The shared accommodation comprises an entrance hallway with staircase to the first floor, bedroom one off to the left and living room the next room along. The living room is cosy and has a window with a rear aspect.
Off the lounge is the kitchen, which benefits from cream base and wall units, with wood style laminate worktops and integrated oven and hob.
There is also a rear lobby providing access to the garden and the ground floor bathroom. The bathroom offers bath with shower over, toilet and sink.
The rear garden is mainly laid to lawn with a pathway, seating area and shed. The garden provides an attractive space for tenants that is ideal for entertaining in the Summer months.
The first bedroom is located on the ground floor, just off of the entrance hallway and is a generous double in neutral tones. The room benefits from a large bay window which allows lots of light to enter into the room.
To the first floor there are three further well proportioned bedrooms.
As the HMO has under 5 occupants no HMO Licence is required at present. Thumb turn locks on exit doors and amenity standards sufficient for the number of occupiers.
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.
The property is in average condition internally and would benefit from some upgrades, although the property is fully let without issue in its current condition. In order to maximise rents we would recommend a new bathroom is fitted, the property is freshly decorated and a new lounge carpet is in place.
This is a great property for someone looking for a hands-off investment in a popular location.
Please note the location of the property would make it suitable for both students or working professionals.
The house is fully double glazed, including the front and back door and is heated by a gas combi-boiler.
Buyers premium of £4,800 inc 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)
