11 Kimbolton
A 6 bed student HMO in Nottingham JV investment
11 Kimbolton is a property one one of Lenton’s prime streets. The property was let and provided income to service the initial buy to let mortgage whilst refurbishment was planned.
This property was unique as it had historically been let as a 5 bed. Through a minor re-configuration the property was changed to a 6 bed within C4 planning use and achieved an alteration to the HMO license up to 6 occupants.
We invested £160k, renovated the property within a year, and refinanced it. Renovation was done in 4 weeks during summer.
After refinancing, investors received back £120k of the initial investment plus 8% annual interest. The rest of the investment was repaid next with the same interest out of income. The property is now stabilised, rented out well, and the investor's money was fully returned and reinvested in other projects.
Key information
Purchase Price - £350k
Refurb Budget - £80k
Total capital investment - £160k including purchase and refurbishment
75% BTL mortgage
Yield at purchase 8%
Number of beds at purchase - 5
Number of beds post refurb - 6
Post refurb valuation - £510k
Equity released - £120k
Gross Revenue post refurb, including bills - £54k
Post refurb Gross Yield - 11%
Gross Yield on capital - 90%
If you would like to understand more about any of my experience please contact me.
