Objective:
Unlock hidden value in an under-priced starter home through targeted upgrades and staging.
Deal Economics:
- Purchase Price: £62,500
- Development Cost: £33,900 (kitchen replacement, bathroom overhaul, new flooring, decor)
- Fees: £3,125 SDLT, £1,800 legal fees
A bridging loan bridged acquisition and refurbishment, repaid on refinance once let.
Refurbishment Strategy:
- Structural survey highlighted minimal remedial works, allowing focus on high-impact cosmetic upgrades.
- OHL Refurbs managed the project from start to finish, including contractor coordination and final snagging.
Financial Outcome:
- Gross Rental Income: £9,000 PA
- Running Costs: £1,830 (management, compliance)
- Net Income: £7,170 PA
Resulting in a 7.08% net yield on cash invested, this opportunity showcases how strategic value-add can outperform vanilla BTLs .
Why It Succeeds:
- Value Creation: A modest total outlay unlocks significantly higher rental than pre-refurb.
- Staging Impact: Professional staging accelerated let-up and allowed top-tier rents in Pontefract’s growing market.
Refinance Upside: Post-refurb valuation uplift supports re-mortgaging, recycling capital into new deals.