FULLY TENANTED BLOCK IN GREATER MANCHESTER 9.2% BMV 8.3% YIELD

Stalybridge, Manchester, SK15 Brief:

Property: This iconic block of flats consists of 3 x 1 bedroom units and 2 x 2 bedrooms.  It was the Inland Revenue Building in 1835 and is Grade II listed. In 2018, the owners built the apartments within the building to protect its heritage.

There are also two commercial units (offices) on the ground floor that generate lease income.

Condition: The property could benefit from being freshly painted.  No other refurb items are known. The outside of the building has just been K-Rendered.

Location: Conveniently located in the heart of Stalybridge; very close to local parks and easy access to public transport to Central Manchester.

Price: £505,000 – 9.2% BMV

True Market Value: £556,000

Tenure: The property is probably best for cash buyers due to it being a Grade II listed building and next to a river which might make it difficult to obtain a mortgage, however, some mortgage lenders will lend on this property.

Freehold Block – Possibility of Title Splitting

Parking: Free street parking on the side road or £30 for an annual parking permit to park in front of the property and all of Tameside.

Size of Each Apartment: 46 sqm / 295.14 sqft

Tenancy Information: All units are let and the tenants are on individual rolling ASTs. They are due a rent review; since the tenants moved in a few years ago, rents in the area have increased due to demand.

Vacant Procession: Yes, if required (currently fully tenanted)

Additional Information:

Management has been charged at the industry standard of 10% for BTL which is £398.40 pcm as per the current rents though the current lady who is managing the block is only charging £140 pcm and is happy to continue managing the units.

The occupiers of the two ground floor offices are happy to sell their units for what they paid (£50,000); one of which can be converted into another apartment.

FIGURES FOR MORTGAGE PURCHASE at 6% (Interest Only) – Fully Managed:

Purchase Price: £505,000

Total Acquisition Costs: £170,800

• Includes Sourcing Fee (1.5%): £7,575

Total Setup Costs: £4,750 (Repainting only)

Total Rental Income: £3,470 pcm / £41,640 pa

Total Expenses: £2,147.05 pcm / £25,764.60 pa

Gross Profit: £1,322.95 pcm / £15,875.40 pa

Price/sq ft: £345.60 (not including the commercial units)

Refurb cost/sq ft: £1.92

ROI: 9.04%

Rental Yield: 8.25%

FIGURES FOR CASH PURCHASE (Fully Managed):

Purchase Price: £505,000

Total Acquisition Costs: £541,975

• Includes Sourcing Fee (1.5%): £7,575

Total Setup Costs: £4,750 (Repainting only)

Total Income: £3,470 pcm / £41,640 pa

Total Expenses: £808.80 pcm / £9,705.60 pa

Gross Profit: £2,661.20 pcm / £31,934.40 pa

Price/sq ft: £348.99 (not including the commercial units)

Refurb cost/sq ft: £1.92

ROI: 5.84%

Rental Yield: 8.25%

Supporting Documents

***Note, all figures were correct at the time of obtaining them. Clients are always encouraged to do their own analyses***