Property Address: 39 Sladebrook Road, Bath, BA2 1LP.

Property Description: Investment Opportunity at 39 Sladebrook Road, Bath, BA2 1LP

We are pleased to present a highly lucrative property investment opportunity in the picturesque city of Bath. This property, currently a five-bedroom house, is situated in a desirable neighborhood known for its excellent amenities and strong rental demand.

Overview:
The property is offered at a purchase price of £400,000, requiring minor roof works estimated at £15,000. Once completed, the property is expected to appraise at £450,000. The charity will provide a guaranteed corporate lease for five years at a rental rate of £45,000 per annum, translating to £4166 per month. This structure eliminates management and maintenance costs, providing a clear path to positive cash flow. After mortgage costs, investors can anticipate an estimated cash flow of £1,967 monthly.

Area Insights:
Bath is renowned for its rich history, vibrant culture, and robust local economy. The area is well-connected, with access to major transport links, making it an attractive location for professionals and families. Schools, parks, and shopping facilities are within walking distance, enhancing the livability of the neighborhood. The presence of multiple transport options ensures ease of commuting, further increasing the area's appeal.

Investment Rationale:
This property is not only a stable income-generating asset but also a chance to partner with a reputable charity focused on housing vulnerable children. The charity seeks long-term relationships with landlords, providing a secure lease for a minimum of five years, with options to extend every five years. This arrangement is particularly appealing in uncertain economic times, as it offers a reliable income stream.

Future Potential:
There is significant potential for expansion with the option to convert the property to six bedrooms without the need for planning permission, thanks to the charity's status. This upgrade could elevate the property's value to £500,000 and increase the annual lease fee to £50,000, further enhancing the investment's profitability.

Comparative Market Analysis:
Current market trends indicate stable property values in Bath, supported by recent sales of comparable properties. This solidifies the end value of £500,000 as justified, making this investment not only sound but also strategically aligned with the area’s growth trajectory.

Conclusion:
This is a unique opportunity for an investor looking to make a meaningful impact while securing a stable return on investment. By partnering with a charity that is committed to long-term housing solutions, investors can enjoy peace of mind, knowing they are contributing to a worthy cause while benefiting financially. We welcome inquiries from prospective landlords interested in this distinctive investment opportunity.

Number of Bedrooms (current): 5

Is there potential to add a bedroom?: Yes

Reception Rooms: 1

Bathrooms/shower-rooms: 2

Property Asking Price: £450,000

Agreed Sale Price: £400,000

Fair Market Value (DUV): £500,000

Comparable 1: Sold £500,000: https://www.rightmove.co.uk/house-prices/details/england-132185987-18700744?s=604f8099c55f84913a5a877d9b01a8e6512aab562c30779e767af8d7151c0fd9

Comparable 2: Sold £450,000: https://www.rightmove.co.uk/house-prices/details/england-142685540-21861133?s=bc1b90c925b1489f3a541852c63d326bc4f28153505897820f2a4d3f42c1b72c

Comparable 3: Sold £625,000: https://www.rightmove.co.uk/house-prices/details/england-134643578-94204749?s=48cf727d0bea7d0d69d2f48e8dffcd5b5a3626b6cce5a3cacb03eec345d63d10

Comparable 4: Sold £460,000: https://www.rightmove.co.uk/house-prices/details/england-134739656-19349398?s=0746893ddd300ae1c788adb3421c7e0c0412cab0d45a168e40e3ba68ab786032

Comparable 5: Sold £630,000: https://www.rightmove.co.uk/house-prices/details/england-144709244-21321943?s=f09f1b5bf683716c8b82dc695543c717391a5314ad7ca5427a42ec47ca7e3e26

Comparable 6: Sold £471.000: https://www.rightmove.co.uk/house-prices/details/england-144785132-21046651?s=3226e92a92c7b61c96154801d11cd02151e7968ebb65f280acad47caf1a76d32

Market Status: Sale Secured by Sourcing Agent

Why is the property being sold?: The landlord or co-operate selling off assets

Is the property in a lettable condition: Yes

Is the sale price negotiable?: Yes

Property Type: House

Freehold or Leasehold: Freehold

Is the property part of portfolio?: Unknown

Exit Strategy 1: BTL with sit-in tenant. Charity offering 5 years secured lease with the option to extent every 5 years.

Exit Strategy 2: Multi-let / HMO

Exit Strategy 3: Capital Growth

If HMO strategy please select: Property is in an article 4 area and has an existing HMO licence from the local authority. The charity has 6 room capacity under planning granted for their status.

Potential Target Demographic: Corporate Let for Vulnerable Adults and Accompanied Staff

Refurbishments Required: 
Immediate Works: Roof Repairs
Scope of Work: 
Inspect and assess the current condition of the roof.
Carry out necessary repairs to ensure structural integrity and prevent leaks.

Budget: 
Assigned budget: £15,000 
Anticipated costs may be lower, depending on the extent of repairs needed.

Timeline: 
Expected completion within 4-6 weeks from the start date, allowing for weather conditions and contractor availability.

Planned Works: Room Expansion
Scope of Work: 
Renovate the property to accommodate an additional room, increasing the total capacity from five to six bedrooms.
Ensure that the new room meets all necessary regulations and standards for occupancy, particularly for vulnerable adults.

Budget: 
Estimated cost for expansion: £25,000 
This investment will enable an increase in lease revenue by £5,000 per annum.

Timeline: 
Planned completion for the expansion work within 8-10 weeks after the roof repairs, allowing for necessary permits and inspections.

Overall Project Objectives:
Ensure the property remains a high-quality establishment that provides comfortable accommodation for vulnerable adults.
Maintain full-time onsite staff to support residents and manage the property effectively.
Enhance the value and rental income potential of the property through targeted renovations.

This renovation schedule outlines a strategic approach to improving the property while ensuring compliance with the charity's mission to provide a safe and supportive environment. The investment in these renovations will not only enhance the living conditions for residents but also contribute to long-term financial stability for the landlord.

Estimated Refurbishment Costs: £40,000

Cash Flow Figures

Purchase Price: £400,000

Refurb Costs: £40,000

Legal Costs: £2500

Stamp Duty: £27500

Survey: £0 - The Charity is having a survey conducted on behalf of the buyer!

Tiger Burrows Consultation Fee's: £4997

Estimated Rental Income: £50,000 per annum, £4166 pcm.

New Mortgage: £2,187.50 (Calculated at 7% for commercial lending)

Stress Test Mortgage: £2500 (calculated for stress test)

Estate Agent Rates: £0 no management fees

MOE: £0 no maintenance fees

Cash Flow Most Likely: £1978 (22% ROI Guaranteed return)

Cash Flow Stress Test: £1666