• Home
  • Caversham Project
portfolio image

Caversham Project

Key features

  • – Semi detached
  • – Corner plot
  • – Four bedrooms
  • – Two reception rooms
  • – Wood flooring Luxury kitchen
  • – Garage
  • – Garden Cellar
  • – Sash windows

Full description

A  substantial Victorian end of terrace town house within easy reach of Reading town centre. The house offers a decent kitchen, stripped wood flooring and high ceilings. There are four great sized double bedrooms, two reception rooms and a cellar.

Add value

The plan is to convert it to a 6-bedroom high end Professional house share. Externally there is a large garden and we have applied planning permission to build a two bedroom detached house in the garden.

Issues

  • the garage cannot be used as a bedroom due to ceiling height restrictions.
  • The utility room is damp, has a flat roof and single skinned extension.
  • Subsidence in the soil caused cracks in 1989 and the property was underpinned in 1990.
  • Insurance companies would not insure it so a structural survey was undertaken by vendor which proved that there was no subsidence since the underpinning was done.
  • At 7 rooms the planning exercise seems to be too costly for just 1 room over the planning threshold.
  • There is only 1 bathroom in the house and to achieve premium rents we will need to add ensuites to all bedrooms.

My 10-step action plan from exchange to income generation.

  1. Liaise with architect and planning consultant for the new build project.
  2. Issue two months notice to tenants to vacate the property.
  3. Submit planning application. (approx 8 weeks).
  4. Start the refurbishment as soon as the tenants moved out.
  5. Manage and monitor the refurb.
  6. HMO readiness. (Furniture, staging, kitchen & bathroom accessories).
  7. Submit HMO licence application.
  8. Market the property.
  9. Tenants check ins.
  10. Generate Passive income.
PROJECT DETAILS

Financial analysis

PP: £441,000
Mortgage (@75% LTV): £330,750
Refurb: £90k (including planning application for detached dwelling in the garden plot).

Monthly Rent: £4300
Mortgage : £1267
Bills: £600
Maintenance: £100
Total costs: £1967

Cash in hand: £2333
ROI: 12% (before re-finance)

Before

Old lounge

Old bathroom which will be converted into a bedroom

Old ground floor room

1st floor old bedroom

prospect-before11

Part of the old lounge converted into a bedroom

Old Floor Plan

After

Twin ensuite room for what was previously the bathroom and toilet.

Ground floor now turned into bedroom with ensuite

1st floor new bedroom

New 2nd floor bedroom

Part of the original lounge now an ensuite bedroom

New Floor Plan


7th October 2015
Categories: