This unique house, located close to the University of Sheffield and Royal Hallamshire Hospital, was crying out for some TLC.
The addition of two en-suite bathrooms in the loft bedrooms, together with two lounges, a large open plan dining kitchen and a garden spread over three levels, along with a funky music theme, now make this refurbished property hugely appealing to students and contractors alike.
Starting out as a four bedroom, one bathroom terraced house, its central location and classic stone front made this property ideal for refurbishment.
Whilst the purchase price was higher than many of my investment properties, there was significant opportunity for both capital gain and ongoing rental income.
Refurbishing the property was a significant undertaking. We replastered and painted the entire house, added 2 ensuites, put in new carpets, removed the old spiral steps down to the basement kitchen and installed new stairs, installed a brand new kitchen, together with new laminate flooring in the basement kitchen/diner area, and put down new decking on all 3 levels of the rear garden.
Spread across four floors, we chose a funky music theme to add some much needed colour and character, including bedrooms inspired by bands and artists originating from the local area of Sheffield (Arctic Monkeys and Pulp).
Unfortunately, we encountered some issues when installing the new stairs between the ground floor and basement level. We also had to install a new steel beam to support the basement ceiling. Our builders worked with structural engineers and the relevant building inspectors to find the solutions to the issues.
| Investment | |
|---|---|
| Purchase price | £305,000 |
| Stamp duty, conveyancing & loan fees | £16,500 |
| Total purchase price | £321,500 |
| Development costs | £75,000 |
| Total spend | £396,500 |
| Return | |
|---|---|
| Current value | £475,0001 |
| Rental income | £3,000 pcm gross, £1,000 pcm net |
| Ongoing costs | £2,000 pcm2 |
| Rental yield | 7.57% gross, 2.52% net |
| Return on capital (ROC) | Approx. 12.6%3 |
1 Remortgaged at 80% Loan to Value ratio (LTV) (£380,000)
2£1,700 mortgage payment, £300 for insurance, letting agent fees and contingency (for repair/maintenance etc.)
3 Net rental return of £12,000 per annum on £95,000 capital
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