House of Multiple Occupancy (HMO)                                                                                                                                   

Our philosophy for HMO accommodation is to provide a premium product and service at affordable prices for our clients. We keep our design simple and timeless remembering that these properties are buy to lets and will need to be maintained. We ensure that by choosing a simple, yet effective finish, we can replace paint, carpets and furnishings often, keeping that new feel that our tenants love. Subtle differences, like using washable paint means that our properties stay looking fabulous for longer, set us apart from other property companies. We also have regular inspections and cleaning to keep the houses looking as good as the day the tenants moved in.



HMO Property Deals

 

Elaine Avenue

This property was purchased in September 2015 via an estate agent. The property was in poor condition and we were able to secure it as we were able to move quickly. This worked for the vendor. The property had two extensions so offered more space than the typical 3 bed terrace on the street. As such, by carefully redesigning the space and moving the kitchen into the centre of the house we were able to create a 5 bed licensed HMO.

 

The Numbers:

Purchase Price:    £167,200  

Refurbishment Costs:  £30,000

Valuation after works:  £225,000

Rental Income PA:     £30,720



Barrow Grove

This property was purchased just before the stamp duty increase. At this time, properties were achieving a huge amount of interest and often shooting far above the asking price. For some reason this little gem seemed to go unnoticed. The refurbishment of this house was funded by a Kent County Council Empty Home Loan (NUE Scheme) https://www.no-use-empty.org.uk. The refurbishment included replacement ceilings throughout, removal of chimney breasts, moving both supporting and non-supporting walls, new kitchen, new shower room and the addition of an en suite bathroom as well as redecoration throughout.

 

The Numbers:

Purchase Price:    £168,000  

Refurbishment:    £25,000     

Valuation after works: £230,000

Rental Income PA:    £25,800


London Road

This was a disused and very much unloved mixed-use property which was set over three floors - shop to the ground floor and duplex apartment to the first and second floors. The layout of this property worked perfectly for HMO conversion. We initially converted this property into a 3 bed house (C3) via Prior Approval, we were then able to use PD to change the use to C4 (Small HMO) 7 Bedrooms and 5 bathrooms. We are expecting to hear any day now whether our recent planning application to convert the property into Sui Generis (8 Person HMO) has been successful. Sui Generis licence granted latter part of 2018!

 

The Numbers:

 Purchase Price:   £130,000

Conversion Costs:  £90,000       

Valuation after conversion to C4 £400,000 (Anticipated Valuation once Sui Generis has been granted £450,000)

Rental Income PA £43,200 (Rental Income once Sui Generis has been granted £49,560)


London Road

A three storey Victorian town house in reasonable condition which was purchased at the asking price (in our opinion the property had been undervalued by the estate agent).


This property converted beautifully into a 5 bedroom HMO with two shared shower rooms.

 

The Numbers:

Purchase Price:    £180,000     

Conversion Costs:   £35,000      

Valuation after works::    £325,000

Rental Income PA:     £36,000


Lammas Drive

A 4 bed Semi detached 1960s house which had been extensively extended many years ago (not very well or attractively). The house was also in poor condition decoratively. 

The refurbishment of this property included the relocation of a man-hole (from inside the house into the garden), creation of 4 en-suites and one shared bathroom. Re-configuring the internal layout to make better use of the available space, relocation of the front door, re-wire, re-plumb and full re-decoration.

 
The Numbers:

Purchase Price £231,200      

Conversion Costs £75,000     

Valuation after conversion £450,000

Rental Income PA £44,280



Exchange with Delayed Completion HMO.

A spacious 3-bed mid terraced 1960’s house that benefited from a small rear extension many years ago. Situated in a small cul-de-sac and has a front and rear courtyard garden. 

The vendor received one of our property purchase flyers through the post and wished to release cash immediately to set up a new business venture. However having lived at the property for over 30 years she needed the money faster than she was able to move out. We agreed that we would exchange contracts in a week and release the deposit funds to her immediately, however she would be given 4 weeks to move herself and her belongings out. In return she agreed that we could have access to the property to carry out the refurbishment and conversion works to the property prior to completion which was set for 6 months time.

The refurbishment of this property included re-configuring the internal layout to make it a 5-bedroom HMO which included two en-suite shower rooms and one shared bathroom, separate downstairs WC and a kitchen plus lounge/diner area. 

The house has recently been issued its 5 person HMO licence.

 

The Numbers:

Purchase Price: £160,000

(Exchange Funds £36,000 released to the owner on exchange so she could purchase her business)

Conversion Cost: £50,000

Valuation After Work: £325,000

Rental Income PA: £34,500