4-Bed Ensuite HMO Conversion

High-Yield 4-Bed Ensuite HMO Conversion with Extension Potential

Property Details

• 3-bedroom end-terrace house
• Approx. 88 m² (943 sq ft)
• Traditional construction
• 1 bathroom
• EPC Rating D
• Freehold
• Suitable for conversion into a 4-bedroom ensuite HMO (subject to statutory approvals)
• Substantial plot to side, suitable for extension to add value and push GDV, open to possibilities to extend and increase bed space.
• Near to hospital and transport links
• Article 4 Free – 4-Bed HMO Conversion & Extension Potential (Subject to Approvals)

Financials

• Target purchase price: £130,000
• Purchase costs: £11,450, including: SDLT £6,600, Legal fees £1,500, Sourcing fee £3,000 (+VAT), Insurance: £350
• Interest-only mortgage (5%): £688 PCM, £8,256 PA
• Monthly NET: £838
• Annual NET: £10,050
• Gross yield: 12%
• ROCE: 33%
• Gross Rent Mortgage Cover: 320%
• Net Rent Mortgage Cover: 122%

Investment Highlights

• Significant value-add opportunity with a substantial side plot offering scope for a rear and/or side extension (subject to planning), providing the potential to increase the property's floor area, add further bedrooms and enhance the end value (GDV).
• Excellent HMO conversion potential, with a proposed reconfiguration into a 4-bedroom, all-ensuite HMO, while retaining a communal open-plan kitchen and living area.
• Strong location within easy reach of Newark Hospital, Newark town centre and major employers, making it well suited to healthcare professionals and other working tenants.
• Well connected, with convenient access to the A1, A46 and Newark North Gate railway station, offering direct services to London King's Cross in around 75 minutes and excellent regional transport links.
• High rental demand from professionals due to proximity to healthcare facilities, local employment hubs and transport infrastructure.
• Opportunity to create a premium co-living product with strong rental income and the potential for an improved commercial valuation following refurbishment and stabilisation.
• Freehold property with a traditional brick construction, offering a straightforward refurbishment and conversion project.
• Attractive BRRR opportunity with the potential to recycle capital through refinance while generating strong ongoing cash flow.

For further details or to invest please contact.