A mixed commercial-and-residential property in Stockton converted into a six-room professional HMO over two upper levels, with the ground-floor commercial unit retained. Presented with the project appraisal figures and the proposed room schedule.
A mixed commercial-and-residential property in Stockton converted into a six-room professional HMO over two upper levels, with the ground-floor commercial unit retained. Presented with the project appraisal figures and the proposed room schedule.
A three-storey property with a ground-floor commercial unit and residential space above, identified for conversion of the upper levels into a six-room professional HMO while retaining the commercial unit.
The ground-floor commercial unit is retained, with six en-suite bedrooms and a communal kitchen and dining area across the first and second floors.
Total capital expenditure of GBP 309,200 divides into GBP 128,300 of purchase price and fees and GBP 180,900 of refurbishment cost.
The appraisal projects GBP 53,400 of gross annual income, 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 | £128,300 | Estimated |
| Refurbishment Cost | £180,900 | Estimated |
| Total Capital Expenditure | £309,200 | Calculated |
| Estimated GDV | £311,250 | Estimated |
| Projected Gross Annual Income | £53,400 | Projected |
| Operating Cost Assumption | 30% | Projected |
| Assumed Operating Costs | £16,020 | Calculated |
| Projected Net Annual Income | £37,380 | Calculated |
| Projected Net Yield on Estimated GDV | 12.01% | Calculated |
Source: Client project appraisal · Document: Project appraisal (Stockton 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 Stockton, Durham 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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