CASE STUDY

Easton Street

A cosy 4-bed flat in the heart of High Wycombe

Key Metrics

4 Bedroom Flat

Full Managed HMO

£130,000

Initial Investment

£96,000

Cash Recycled

46.7%

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.

High Wycombe

Transport Links

High Wycombe is a University town in London's Home Counties sitting at the end of the M4 Corridor and close to the convergence of the A404, A40/M40 and M25.

Its excellent road connections, bus depot and overground train links into Marleybone or out to Oxford make this a top town for commuters to settle when compared to the cost of living in Greater or Prime Central London.

Potential Tenants

High Wycombe benefits from an abundance of local key workers employed by the Council HQ, Police HQ, Fire Station, Hospital, University and an excess of highly acclaimed and independent grammar schools.

Employment

Promising signs of regeneration and possible gentrification seem to be under way with brands such as Porsche, Bentley and John Lewis opening large Commercial Premises.

A total of £55m investment has been specifically allocated to High Wycombe and surrounding areas.

The Property

Existing Property

3 Beds, 1 Baths, 82.1 m²

The layout consisted of three bedrooms upstairs, a large reception room and large kitchen dinner. The bedrooms upstairs along with a single bathroom; and the kitchen and a living room on the lower floor.

The Strategy

Set over 2 floors, above a retail unit in the heart of town centre, the oversized kitchen and location of this property made it an ideal candidate for a HMO.

A simple relocation of the kitchen/dinning room into the large living room space would allow for an additional bedroom. The location of the soil pipe and utility cupboard near the entrance door allowed for an easy WC installation improving the "tenant:toilet" ratio.

A strip out was completed, the kitchen relocated, HMO fire regulated measures (such as fire rated doors locks and alarm system) was installed and then decorated to a high standard.

The construction period lasted 3 months and the property was fully let by month 4 while we set to work on the refinance.

The Timeline

Offer Accepted
Apr 2023

Exchange of Contracts
May 2024

Refurbishment Works
Jun-Aug 2024

Refinance
Feb 2024

The Numbers

Acquisition

Listed Price: Auction Property

Purchase Price: £218,000

Legal & Financing Fees: £9,000

Stamp Duty: £6,500

Renovation Costs: £38,000

Finance Interest Costs: £14,000

Gross Development Cost: £285,500

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Financed Funds: £155,500

Cash Requirement: £130,000

Refinance

Gross Development Value: £316,000

Recycled Cash: £96,000

Equity still invested: £34,000

Rental Return (per annum)

Rental Income: £33,000

Mortgage Interest Costs: (£10,000)

Running Costs: (£4,200)

Net Yield (Optimistic): 55.2% £18,800

Voids & Maintenance: (£3,500)

Net Yield (Conservative): 45% £15,300

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.

PROPERTY RE:MINTED