A three-bedroom terrace in the North East converted into a six-room professional HMO across three levels, each room with its own en-suite. Presented with the project appraisal figures and the proposed room schedule.
A three-bedroom terrace in the North East converted into a six-room professional HMO across three levels, each room with its own en-suite. Presented with the project appraisal figures and the proposed room schedule.
A well-located three-bedroom terrace in a strong North East rental area, identified for conversion into a six-room professional HMO with en-suite provision to every bedroom.
Six en-suite bedrooms and a communal kitchen and dining area are arranged across three levels.
Total capital expenditure of GBP 351,715 divides into GBP 182,140 of purchase price and fees and GBP 169,575 of refurbishment cost.
The appraisal projects GBP 48,300 of gross annual income across the six rooms, against an assumed operating cost of 30% covering management, utilities, maintenance and voids.
Photographs of the property as acquired, and of the completed conversion.
The property as acquired, before conversion works began.
The completed six-bedroom HMO.
Photography of the completed conversion is being prepared and will appear here once approved.
The 6 en-suite bedrooms and communal kitchen are arranged across 3 levels.
The headline project figures, each labelled with how it was arrived at.
| Figure | Value | Basis |
|---|---|---|
| Purchase Price + Fees | £182,140 | Estimated |
| Refurbishment Cost | £169,575 | Estimated |
| Total Capital Expenditure | £351,715 | Calculated |
| Estimated GDV | £345,000 | Estimated |
| Projected Gross Annual Income | £48,300 | Projected |
| Operating Cost Assumption | 30% | Projected |
| Assumed Operating Costs | £14,490 | Calculated |
| Projected Net Annual Income | £33,810 | Calculated |
| Projected Net Yield on Estimated GDV | 9.80% | Calculated |
Source: Client project appraisal · Document: Project appraisal (Gateshead HMO, scenario 1) · Approval: Awaiting stakeholder sign-off
Figures are project-specific and may include estimated, projected or calculated values. Property values, income, operating costs and investment performance may vary. Past performance and projections are not guarantees of future returns.
Capital in, estimated value out, and how projected income becomes projected net income.
Figures are project-specific and may include estimated, projected or calculated values. Property values, income, operating costs and investment performance may vary. Past performance and projections are not guarantees of future returns.
Speak with Imran and Ian about Gateshead HMO investment.
Property investment carries risk. The value of property and any rental income can fall as well as rise, and you may get back less than you invest. Figures shown are illustrative or projected placeholders pending stakeholder and compliance approval, and do not constitute financial advice, a personal recommendation or a forecast. This tax and legal information is general and not personal advice.
Any figures labelled projected are projected only, based on stated assumptions, and are not guaranteed. They do not constitute financial advice, a personal recommendation or a forecast.
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