splash-images-01

The Returns


Investment Information

We work with investors to develop properties with excellent investment potential. The below example outlines a worked example for one of our typical investments.

Your Returns


A typical investment is detailed in the calculation to the right. In this example, an investment of £210k yields 14% gross return and 9% net return and it is based on your ability to pay cash for the purchase and refurbishment costs. LSH Developments will typically work to convert a 3 or 4 bed terraced house in to a 6 bed student house by extending to the rear and in to the roof space in addition to returning the building to a bare brick state before full reinstatement with all new services and interiors. The figures also include final furnishings.

Expanding Your Portfolio


The quickest route to increasing the size of your investment portfolio is to secure commercial funding on your investment once all construction works are completed and the property has been tenanted. Commercial valuations are typically higher than standard residential valuations and they generally allow you to recoup a higher proportion of your investment enabling you to move on to your next project.

Luxury Student Homes can help you through this process and we have professional service providers who can facilitate this for you however a sample revaluation calculation is below.

Example Commercial Valuation Calculation


Using one of our specialist lenders, they would typically look to value your investment on an average yield of 12% per annum. For the same 6 bed property used in the earlier example, this would give a commercial valuation of £221k and allow you to access £166k in remortgaged funds:


Valuation Calculation

Rooms
6.00

Gross rent per week
£95.00

Net rent per week
£85.00

Net rent per year
£26,520.00

Valuation based on 12% yield
£221,000.00


Mortgage @ 75%
£165,750.00


Typical Mortgage Payments


Typical student HMO mortgage products range between 4% and 5% giving you an expected monthly payment of between £550 and £700 per month based on the example above on an interest only basis.

Example Investment Calculation


example-02

example-04

Investment Information