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5-Bedroom All Ensuite HMO - Medway
Moses Oladeji • 5 November 2024

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King Street, Medway


  • Purchase Price: £277,000
  • Revaluation: £390,000
  • Gross Annual Rent: £50,340
  • Gross Yield: 12.91%
  • ROCE: 23.57%      

Challenges


Conservation area project with the following property development restrictions:

  • Planning Restrictions: Required Certificate of Lawful Development for conversion from C3 to C4 and full planning approval for any external work.
  • Design Limitations: Constraints on internal architectural styles and features.
  • Increased Costs: Higher expenses for compliance with conservation and HMO standards.
  • Expert Consultations: Need for an architect experienced in HMO designs.
  • Drain Redesign: Need to redesign the entire internal drains to accommodation the additional 4 en-suites.
  • Limited Modernisation: Restrictions on adding modern features like double glazing, solar panels, or extensions.
  • Fines or Penalties: Risks of non-compliance leading to legal penalties.
  • Valuation Risk: Potential for undervaluation due to surrounding factors.


    Before Images

Solution


Engaged an experienced architect to navigate the development restrictions effectively:

  • Planning Restrictions: Gained Certificate of Lawful Development for conversion from C3 to C4 and no other planning approval required.
  • Design Limitations: Even with conservation area limitation, we were still able to make structural changes that was required for the HMO development.
  • Increased Costs: The higher expenses for compliance with conservation and HMO standards was unavoidable.
  • Drain Redesign: Successfully achieved by our internal development team, with all rooms featuring their own ensuite, except for one with an off-suite.
  • Fines or Penalties: No risk of fines or legal penalties as all rules were fully complied with.
  • Valuation Risk: Managed effectively despite lack of control over surrounding factors.


    After Images

Results


All-ensuite 5-bedroom HMO delivered within budget, optimising cash flow & standards.

Below are some selected pictures showcasing the tasks we executed to create this wonderful product.


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