Commercial Conversion Case Study
Clearwater Property Partners specialise in investing in the North West and Greater Manchester. To date we have completed over 50 projects, varying from 3 bed HMOs to acquiring land with a GDV of £1.67million.
A two bedroom first floor flat located near to Dollis Hill tube station in Willesden.
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For those who seek to build a life that enriches others and the local community, this model provides a fantastic opportunity to grow and develop a successful and sustainable portfolio.
MAXIMISING ON THIS PROPERTY FOR OUR CLIENT
Conducted a full internal refurbishment using Regal Property Services to carry out and manage the work, the refurb was carried out to Brent Council additional licencing standards creating three lettable rooms including one with en-suite facilities. After managing the building work we let the three rooms to professional tenants, ranging from a trainee architect, a service staff member working at a five star hotel in Central London and an office worker for £750 PCM for the en-suite room and the other rooms at £700 PCM and £650 PCM giving a gross total of £2100 per calendar month
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BENEFITS FOR OUR CLIENT
Planning permission and the resulting refurb and loft extension added to the square footage of the property which added an additional £60,000 - £70,000 onto the property valuation and the cost of this work was half this figure. The gross rent is taken from £1500 PCM to a whopping £2895 PCM (an increase in £1395 PCM gross) thus maximising on the rental yield and adding value to the property, limiting tenant void periods, having a product with a constant rental demand as room rents are the next highly sought after letting in the area after two bedroom flats. The property refurb was done to Brent Council Additional HMO standards and subsequently, our Property Management team fully manage the tenancies.
Clair centred the interior revamp around a scandi-inspired look. She kept the cream walls, which would have cost 4k to repaint, but produced a clean and modern finish through repainting the feature walls white and carefully selecting pieces of furniture.
‘I chose old faithful Cornforth White to re-paint feature walls in the bedrooms, which combined with the existing cream walls and new white woodwork, gives the rooms a more modern look.’
“In the lounge area, I added a feature wall with drift wood effect wallpaper and new light fittings, and picked out scandi-style sofas and furniture.”
“Pinterest is a great source of inspiration,” she says. ‘I also look at Instagram and the kitchen brochures from Magnet or Howdens, as these give you some good ideas.’
However, it was the kitchen transformation that Clair was most impressed by. The walls were painted a light grey and retiled. Meanwhile, she installed a purpose-built breakfast bar and had it painted it to match the walls.
Clair picked up the house for £190,000. Since she completed the works on it, it has been revalued for £200,000. ‘On the actual refurb I spent a total of £14.5k on all the work, plus £8k on furnishings, furniture and appliances.’ Major costs included the £3,000 she spent on an installation of a new boiler, pump and cylinder, £1600 on decorating and £3800 on joinery.
‘Other costs included interest on interim finance whilst I converted it to a HMO, £948 for the 5 year license fee, legals and survey fees,’ she says.
The property is now giving Clair a return on investment of 27.5%, after allowing for a 10% maintenance allowance. She lets the property herself, allowing her to avoid agent fees.
A note from our Investor
"Carole and Charlotte work tirelessly to provide excellent investment opportunities.
I have dealt with them first hand and highly rate their professionalism, level of knowledge but ultimately their openness, integrity and honesty. It is refreshing to hear people in the industry not only talk about the ‘roses’ but help you gain a full picture of a property investment before deciding to invest money."