The below example shows how we took a 3 bedroom property in Wavertree, 140 Lawrence Road, and turned it into a fully tenanted 8 bed Luxury Student Home delivering an annual rental return of 10.52%.
LSH Developments purchased this property at auction for £100k. It was configured as three poor quality, unlettable, one bedroom flats and LSH identified the opportunity to convert the property back in to one large 8 bedroom student property. Conversion from three units back to one household allowed LSH to take advantage of the lower VAT rate of 5% for such conversions.
Conversion works at the property took five months and the total spend was £157k. The overall spend on the project equated to £257k to give a per bedroom cost of £32k on the completed development. Annual gross income is now £39,520 with net income after all fees equating to £27,040 to give a net return of 10.52%. The property was purchased, refurbished and fully tenanted within a 6 month period!