CASE STUDY

67 Radcliffe Gardens

A beautifully presented 4-bed HMO in Carshalton

Key Metrics

4 Bedrooms

Full Managed HMO

£130,000

Initial Investment

£67,500

Cash Recycled

20.1%

Annual Rental Return

The UK Property Market

Robust Track Record

The UK property market has consistently delivered strong returns over the past 50 years, with house prices rising by an average of around 7% annually.

Increasing Rental Demand

Rental demand in London and surrounding areas is incredibly strong, fuelled by a thriving job market and a growing population. With consistent demand from young professionals and students, rental prices continue to rise.

Strong Financial Standing

With a stable economy, transparent legal system, and well-regulated financial markets, the UK offers a secure environment for investment. London’s status as a global financial hub also attracts international capital, further boosting property values and investment opportunities across the UK.

 

Carshalton

Transport Links

Carshalton is a Small Town in the South of London with direct trains to London Bridge and London Victoria, and access to major Motorways such as the M23 or M25.

Its excellent road connections, train links into London, and less than 1 hour drive from the East coast make this a top town for commuters to settle when compared to the cost of living in Greater or Prime Central London.

 

Potential Tenants

Carshalton benefits from an abundance of local key workers working at The Royal Marsden Hospital, leader in Cancer Research in the Country, as well as good train connections to different London Universities and an excess of highly acclaimed and independent grammar schools.

Employment

Within 30 minutes commuting distance from Central London, and surrounded by areas such as Sutton, Croydon or Morden, the area has seen significant regeneration over the past decade.

The Property

Existing Property

3 Beds, 1 Bath, 89 m²

The flat layout consisted of three bedrooms, a large living room, a kitchen and a bathroom, with a large corridor and stairs leading to the communal areas.

The property is situated on the top floor of a very quiet Ex-Council Estate and was in need of light modernisation.

The Strategy

The works related to this project were mainly focused on the renovation of the bathroom, and modernisation of the looks of the property.

To increase it's appeal to tenants, we created a separate cloakroom to provide the flat with a second toilet and basin.

We carried out a partial re-wiring of the property to bring it to HMO standards and replaced all existing doors and frames to solid core high quality oak fire doors.

Finally, we replaced all flooring in the property with a light wooden laminate floor, as well as replaced all skirting work to a more discreet style, and re-painted the property in a light tone.

The Timeline

Offer Accepted
Oct 2021

Exchange of Contracts
Feb 2022

Refurbishment Works
Mar-Aug 2022

Refinance & Rent
Sep 2022

The Numbers

Acquisition

Listed Price:                                £320,000

Purchase Price:                          £315,000

Legal & Mortgage Fees:                 £3,150

Stamp Duty:                                    £3,250

Renovation Costs:                        £25,100

Mortgage Interest Costs:               £2,000

Gross Development Cost:      £348,500

_________________________________________

Financed Funds:                          £222,500

Cash Requirement:                  £126,000

Refinance

Gross Development Value:        £320,000

Recycled Cash:                               £66,000

Equity still invested:                   £60,500

 

Rental Return (per annum)

Rental Income:                               £35,000

Mortgage Interest Costs:             (£14,300)

Running Costs:                                (£6,500)

Net Yield (Optimistic): 23.5%       £14,200

Voids & Maintenance:                    (£2,000)

Net Yield (Conservative): 20.1%   £12,200

 

The Gallery

About Us

Dave

Dave “Property” Kidd is the Founder and Managing Director at Property Reminted.

Having built a multi-million pound property portfolio and finding financial freedom for himself, Dave left behind his successful corporate career to pursue fulfilment in helping others achieve the same.

Sergio

Sergio Grande is our Investment Director at Property Reminted.

A RICS Chartered Surveyor and Property Investor, Sergio has a wealth of Construction experience having managed multi-million pound Commercial and Residential Schemes. This experience is used to carry out detailed analysis and to implement budget management strategies on all our Property Deals; an absolute must for optimising Return On Investment.

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