BWM are pleased to bring this excellent investment opportunity to the market. This leasehold upper maisonette can be purchased for a 25% deposit on a standard BTL mortgage , refurbished and then let on a long term end user agreement with G4S. The return on capital employed is outstanding and we also have no voids for 48 months.
The property is currently a three / four bedroom bedroom upper maisonette close to South Shields Town Centre with fabulous views to the Coast and River Tyne. It would be our intention to refurbish and modernise the property whilst converting the dining room in to a fourth bedroom. The total cost of these works and full furnishings would be circa £12k. The property would not be licensed but would be registered with South Tyneside Council.
Monthly first year costs on this property amount to £140( based on a mortgage at 3.99%) whilst income is fixed at £743 pcm. All internal maintenance is covered by G4 and the property is visited on a monthly basis. Normal market rent for a flat of this size would be £525 pcm. There are no service charges and ground rent is £10 per annum. For an outlay of just over £30k you would receive 1st year income of nearly £7k. The initial investment is paid back in just over four years. For those looking to re-fiance we would expect an after works valuation of circa £75k.
The property is part of a block of four and is arranged over two floors and briefly comprises of an entrance lobby which leads to a kitchen , downstairs wc , lounge with balcony , dining room / bedroom iv , to the first floor are three double bedrooms and family bathrooms. The property has double glazing installed to the windows and there is gas central to all of the rooms.
Please contact REX to register your interest early as this house will generate a lot of interest.