Leek town centre

Four refurbished flats over first and second floors on one title

Available individually - offers over £65,000 each or together - offers over £235,000

Fully EPC upgraded with insulation exceeding modern standards

12% yield in present format

17% yield possible with altered rental format.

Potential to convert attics to upgrade second floor flats to 2 bed loft apartments

Potential to further increase capital uplift by splitting titles.

Leek is a beautiful traditional small market town on the edge of the Peak District in the affluent Staffordshire Moorlands with a vibrant and thriving town centre with very few voids.

All flats are under complete refurbishment and close to completion and have been insulated to modern standards with 100mm Celotex-type insulation to all external facing walls and 400mm loft insulation. EPCs should achieve a C if not B.

Rental Projections in Existing Format:

Three One-bed flats £575 pcm x 3 £20,700pa

Studio £500 £6,000pa

Total £4,000 pcm £26,700 pa

This represents a very healthy yield approaching 12%. Investors and landlords will appreciate how attractive this is. It is unusual to find a yield this high (other than HMO style properties, which also have more onerous management profiles). This property consists of small and easy to rent single-lets offering the landlord a safe spread and an easily managed, arms-length, high yielding investment.

****Study Proposal for Augmented Rental Projections With Altered Format****

With further minor development works (described below) it would be possible to achieve a significantly augmented rental income. This is a suggestion and buyers must do their own due diligence to verify the feasibilities suggested.

Conversion of attic space over each top floor flat to add a further bedroom and bathroom to each top floor flat to create two 2-bed luxury loft-style apartments. The existing attic structures are favourable for a straightforward conversion. There are existing capped-off stairwell openings.

Each attic space would add an additional floor area of approximately 18m2 to each flat (with at least 1.5m height at the eves and approx 2.5 m at the centre, creating 2 extra en-suite bedrooms.

Each top floor flat could be rented as a MiniMo with two sharers, each with en-suites, shared kitchen/lounge.

Divide bedrooms of both first floor flats to create 2 bedrooms in each flat. Each first floor flat could be rented as a MiniMo with two sharers.

All newly created bedrooms mentioned above would be greater than 6.51m2 to comply with minimum HMO space standards, although with only two sharers per flat, they would not presently be subject to any HMO regulation.

Rental Projections in Augmented Format:

Four flats with two sharers each (8 tenants, 4 of the bedrooms would have en-suites):

Per tenant: £400pcm 8 tenants £3,200pcm Per Annum £38,400

This would equate to a yield approaching 17% with minimal/easy HMO management issues.

Further Considerations:

The compact, terraced and very well insulated nature of the units makes them economical for tenants with low utility costs. All flats would be band A. The central location makes them very convenient and ensures few voids for either shops or flats.

Serco have indicated that they are looking for properties in the area for long, fixed term and generous rents offering further scope to increase the profile of this investment.

If all the rent augmentation measures were implemented successfully along with Serco contracts then this could boost the rental figures well in to the £40,000s, producing a potentially quite astronomical yield in to the 20%s, yet a very modest management profile!

There is strong residential demand in Leek but the flats would also be attractive as serviced accommodation units. Leek is only 10 miles from Alton Towers, 1 mile to Lake Rudyard and 2 miles from The Peak District National Park. There are relatively few accommodation providers in Leek and there is a big gap in provision between The Premier Inn at £55 per night and more luxurious providers at £90+ per night. None of the competition have a thriving Weatherspoons pub with delicious yet affordable fayre next door either!

There is potential for considerable further capital uplift by splitting the title for the individual units. On present comparisons of similar flats in Leek a GDV on splitting conservatively of around £300,000 could be achieved. Prospective buyers are encouraged to do their own research.

Based on recent local flat sales the lowest sold price for a comparable (but un-modernised and un-refurbished)flat is £75,000. The median is £80,00 to £100,000 based on recent sales.

The attic structures lend themselves to being converted to add further luxury en-suite bedrooms and to upgrade the second floor flats to luxury 2-bed loft apartments then the GDV for all four flats would be well over £400,000.

There are now companies available that have expertise in this area and specialise in this kind of title splitting investment model and can assist buyers to achieve the best possible uplift, please enquire for details.

The property is presently on one freehold title but is available either as flying freehold or long leasehold/commonhold title with share of the freehold as per buyer preference.The flats can be split and sold separately.

Offers are invited for all four flats, - offers over £235,000

Alternatively offers will be considered for individual flats - offers over £65,000 per flat.

Selling Format and Terms:

The property will be sold under auction-style conditions with best and final offers (date to be advised). Please note however that the property is not listed in any auction and there are absolutely no fees to be added to the selling price. The selling price that will be agreed is the price the buyer(s) will pay.