PURCHASE AT AUCTION
Lot 5 - 23 West Parade, Norwich, Norfolk, NR2 3DN
A substantial two storey detached property, previously used as a 8 bedroom hostel, in need of some modernisation, benefitting from front and rear garden areas, in a popular residential road, with extension / development potential subject to requisite consents - Vacant.
Guide price: £590,000
Key features
- Substantial detached property
- Previously used as a 8 bedroom hostel
- Front and rear garden areas
- In need of some modernisation
- Extension / development potential subject to requisite consents
- Vacant
- Freehold
Accommodation and Tenancy Schedule
| Ground Floor | Entrance Hallway | Three Reception Rooms, | Two Bedrooms | Two Shower Rooms/WC | Kitchen | Storage |
| First Floor | Six Bedrooms | Room | Storage | Bathroom/WC | Shower Room/WC |
Acquisition Cost
| Purchase Price | £700,000 |
| Stamp Duty | £60,000 |
| Agent's Fee (1.5%+vat ) | £12,600 |
| Legal & Misc (1% of PP) | £7,000 |
| Total Acquisition Cost | £780,000 |
Cash Investment Required
| 35% Deposit at Purchase | £245,000 |
| Stamp Duty | £60,000 |
| Interest for 12months @ 15% for £455k | £68,000 |
| Agent & Legal | £19,600 |
| Professionals / B.R / Structural / QS / MS, etc. | £5,000 |
| Misc | £12,400 |
| Total | £410,000 |
Profit
| Profit (Estimated) | ||
| GDV (Sale Price) | £1,485,000 | |
| Interest on Purchase | £68,000 | |
| Sales Agent + Legal (2%) | £19,600 | |
| Acquisition costs | £780,000 | |
| Development Costs | £253,000 | |
| Total Costs: | £1,120,600 | |
| Profit | £364,400 | |
Return on Investment
| ROI (Estimated) | |
| Cash Invested | £410,000 |
| Profit Earned | £364,400 |
| Total ROI | 88% |
| Profit for JV Partner (50% share) | £182,200 |
| ROI for JV Partner | 44% |
GDV Appraisal
| Units Type (HMO 8 Beds) | Units |
| Ground Floor - No of Bedrooms | 2 |
| First Floor - No of Bedrooms | 6 |
| Total Units | 8 |
| Gross Development Value (Collective) | |||||
| Units | Level | Description | GIA m2 | NIA m2 | Value |
| 1 | Ground | 2 Bedrooms, 3 Receptions, kitchen, shower etc | 171 | 171 | £769,500 |
| 1 | First | 6 Bedroom, storage, bathroom & shower | 159 | 159 | £715,500 |
| Total: | Sale@£4,500/m2 | 330 | 330 | £1,485,000 | |
| Gross Rental Value (Collective) | ||||
| Units | Level | Description | Sqm | Value (Rent) |
| 1 | Ground | 2 Bedrooms, 3 Receptions, kitchen, shower etc | 171 | £16,800 |
| 1 | First | 6 Bedroom, storage, bathroom & shower | 159 | £50,400 |
| Total: | @ 4.52% Yield |
£700 per Room | 330 | £67,200 |
DEVELOPMENT Costs (Estimates)
| Item | Description | Amount £ |
| Legals | £5,000 | |
| HVAC, Electric drawing | 3% of Construction Cost | £5,000 |
| Construction / Refurb | 330 sqm @ £600 | £200,000 |
| Insurances | For building & Construction | £3,000 |
| Finance Cost | 15% @ for £200k for 12m | £30,000 |
| Section106 / CIL | Nil | £0 |
| Contingency | 5% of Construction Cost | £10,000 |
| Total | £253,000 |
LEGAL PACK
Disclaimer
Valuations & Appraisals by Sleek are strictly estimates only and you should use them on that basis. The valuation Model analyses prices for equivalent properties sold or sold in the area. These properties may differ in ways that we do not or cannot consider. Valuations are subjective and based on market forces, which may change. Valuations must not be used for property sale, purchase, mortgage or related purposes. You should seek a professional valuation from a qualified surveyor before deciding whether to buy or sell a property. We shall not be liable for any losses you or anyone else suffer due to relying on the valuations. This includes not being liable for any loss of property, loss of bargain, loss of capital through over-payment or under-sale or for any indirect, special or consequential loss.