Burnsyde Beach House - Full Refurbishment - Holiday Let
The Deal background
This property hadn't been on the market long when we managed to agree the purchase price, and it wasn't short of interest. With it's unique, prime location and stunning views it had been under offer twice and fallen through on both occasions before we managed to secure the property with the use of a bridging loan. It meant we could move quickly on the purchase, and that we could ensure that all the necessary work was carried out before putting the property onto a term mortgage product.
Purchase Price: £180,000
Stamp Duty: £6,500
Purchase funded by 70% LTV Bridging Loan: £126,000 at 0.99% per Month and access to £30,000 for required refurbishment works.
Cash Requirement for Purchase: £65,550 funded by £70,000 Private Investor loan at 10% per annum
Total Cost of Refurbishment Works: £45,000 with property complete and ready for re-valuation within 4 months
RICS Valuation for re-finance: £325,000
Holiday Let Repayment Mortgage at 75% LTV: £243,750
Bridging Loan plus Interest to be repaid after 6 months: £167,200
Cash Released on re-finance: £76,550
Funds released back to private investor: £73,500
Own funds remaining in the deal: c.£7,500
Monthly Mortgage Payment: £1,110.47
Total Monthly Running Costs: £1,550
Average Monthly Rental: £3,420 based on 75% occupancy rate at £150 per night
Annualised Profit: £22,440
Annual Return on Cash: 299%
Overview of work carried out
The property was stripped back to brick on all walls, so that it could be tanked, re-insulated and boarded, then plastered throughout. A full electrical re-wire was completed along with new heating system and upgraded boiler.
The old loft room was fully stripped and re-insulated with celotex foam board, and the formation of a double bedroom with en-suite was undertaken. The existing narrow staircase was removed from one of the ground floor bedrooms and a new staircase was re-positioned in the living room.
The door and glass windows between the sunroom and kitchen were removed and replaced with an archway to open up the stunning views of Saltburn Beach.
Externally, the property has been painted white and the original brick features highlighted in stone grey. The roof has been re-pointed and re-painted to really bring the property back to life. The garden has been fully landscaped and a patio area has been formed where the stunning views can be taken in on a summers evening.
OPERATING AS A HOLIDAY LET
The property is now listed as a Holiday Let on the major portals such as Aribnb, Booking.com, Trip Advisor Rentals, HomeAway to name a few, and generated over £10,000 of future bookings within the first three weeks of being listed.
This is the first property that we have brought into the portfolio to run as a holiday let, but we are now actively seeking further opportunities along the North Yorkshire coast as we see the demand for UK based holidays increase year on year.
INVEST In a project
If you're a private investor looking for a return on your capital, or you're a property investor looking to add properties like this to your own portfolio or even looking for a way to get started, then get in touch with us today and we can help you reach your individual goals.