For Cash Deposit Buyers Only we have available, through one of our Partners, an opportunity to secure outstanding yields on a fully managed scheme.
The scheme is operated in the Teesside and Leeds areas, and the exceptionally high yields are possible because of a scheme run in conjunction with Local Councils to house their tenants.
The whole process is managed start to finish for the Investor:
- Suitable properties in Teeside and Leeds postcodes, which relate to the Council's housing needs, and that can be let to Council tenants, are identified.
- The Investor will then receive an email or phone call telling you all you need to know about the property, i.e. cost, yield and comparables.
- If given the go ahead by the Investor the purchase price is negotiated on your behalf.
- The Investor will purchase the property directly from the estate agent who is marketing the property.
- On the Investor's purchase completion the property will then be let on behalf of the Investor.
Example Deals: NB These types of deal are now also available in Teesside
York Road, LEEDS
Purchase price £104,000
Property converted to 9 self-contained units @ £101.54 per week each
Total acquisition cost with refurbishment and fees £124,000.
Gross Annual Income £47,520
Anticipated Gross Yield 40%
Arthington Terrace, LEEDS
Purchase price £60,000
Property converted to 6 self-contained units @ £101.54 per week each.
Total acquisition cost with refurbishment and fees £77,500
Gross Annual Income £31,680
Anticipated Gross Yield 45%
Moorfield Road, LEEDS
Purchase price £120,000
Property converted to 9 self-contained units @ £101.54 per week each
Total acquisition cost with refurbishment and fees £148,000
Gross Annual Income £47,520
Anticipated Gross Yield 35%
Salisbury View. LEEDS
Purchase price £110,000
Property converted to 7 self-contained units @ £101.54 per week each
Total acquisition cost with refurbishment and fees £129,750
Gross Annual Income £36,960
Anticipated Gross Yield 25%
FAQs:
What are the charges?
There are no upfront or membership fees. The Investor pays a one off finder's fee, disclosed at the point of enquiry, which is paid after completion.
Ongoing charges are a 12% management fee and £65 one off charge per lease.
Can I get my own mortgage/solicitors?
Yes. However, if required the appropriate recommendations can be made.
How do I know that the price I am paying for the property is competitive?
Comparables are always provided, and you are free to do your own research. In addition, the purchase price will often be negotiated down by 10 - 20%
What type of tenants do you provide?
All of the tenants are DHSS. When they have chosen a room/property they then go through the same process with trained staff, who look for any prospective problems. If they are not suitable they do not sign a lease.
But are there any problems with these tenants?
There are no guarantees as indeed there are not with private tenants. But they are all interviewed twice, once by the Council and once by the Management Company. They also know if they do anything wrong then the Council do not have a duty to re-house them. When the lease is signed all tenants sign a code of conduct letter so they understand fully what is and what is not acceptable.
How often is the property inspected? The Management Company have dedicated, trained staff that visit all properties on average twice a month, and produce a report on tidiness and cleanliness. If they are not satisfied then a standard warning letter is issued to each tenant.
If you would like further information on this scheme, or to discuss it in more detail, then please email deals@northeastpropertyforum.co.uk with your contact details and the best time to call you.
