We believe this property works best with a mortgage at 75% LTV or less based on a mortgage interest rate of 5%.
A rare opportunity to acquire a recently refurbished HMO in a great location just a five-minute walk to the University of Hull. The property is a three-bedroom, one-bathroom house located in a small cul-de-sac just off Cottingham Road. Cottingham Road provides a variety of local amenities, such as convenience shops. pubs and a large supermarket.
Based on 75% LTV with a 5% interest rate and taking buying costs into account (including the buyer’s fee) the projected cashflow of over £389 per month and ROI of 10.3% 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. The house is fully double-glazed, including the front and back door, and is heated by a gas combi-boiler.
The shared accommodation comprises a bright and neutral entrance hallway that leads through to the open-plan kitchen living room. The living room is spacious and tastefully decorated in neutral tones with a grey accent feature wall and grey flooring.
As you turn to the left there is a refitted modern kitchen with appliances that overlooks the living space. The kitchen units are a tone of grey and the open plan kitchen living room decor makes the room feel welcoming and inviting.
There is access to the rear garden from the kitchen. The rear garden is mainly laid to lawn with a pathway that leads to the parking space. The garden provides a 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.
On the first floor, there are two further well-proportioned bedrooms. The decor in the bedrooms is neutral throughout and there is also a modern spacious recently refitted shower room.
Externally the plot is approximately in 0.05 acres in total and benefits from a small forecourt to the front of the property.
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 before the implementation of the A4 and the seller can provide supporting evidence.
As the HMO has under 5 occupants no HMO Licence is required at present. Being an HMO the property has been installed with a Grade D – mains interlinked fire detection system with battery backup. Thumb turn locks on exit doors and amenity standards sufficient for the number of occupiers.
Buyers premium of £4,000 + 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)
