Empire Case Study

CASE STUDY

Britannia Inn, Low Road, Doncaster DN4 8PP House in Multiple Occupation (“HMO”) Development Site

DESCRIPTION The national trend of reduced public houses has impacted on the property operating in this role.The site is located on the Southern fringes of Doncaster, north of the village of Balby. Locally, there are excellent motorwaynetwork links with the A1 J35 & J36, and M18 J2.

The property is also within easy reach of Doncaster town centre.

The property is a prominent and large part 2/part 3 building on the corner junction of Cross Street and Oliver Road. There are various out buildings to the back of the building, and there is significant potential for redevelopment into residential accommodation (subject to planning & Local Authority consent).

The existing use class of the property is A4 ‘Drinking Establishments’. Planning consent is not required to change the current use to A1 (shops), A2 (financial and professional services) or A3 (restaurants and cafes). The site is ripe for an alternative development and we strongly feel that the property would convert into a 32 studio room, with several communal areas over 4 floors, including the basement.

The proposed change of use would be required to make the property a HMO sui generis and this would require full consent from the Local Authority. However, Empire Property Concepts has significant experience in helping clients achieve change of use and will work closely with your surveyor to achieve this.

• Freehold • Vacant possession • Development potential (STPP) • Approx gross site area: 6,969 sq.ft* • Approx ground floor foot plate:

3,274 sq.ft* • Guide Price £250,000 + VAT (We are able to secure the property at £180,000 NO VAT )

teL: 01302 564 263 FaX: 01302 564263 eMaiL: info@empirepropertyconcepts.co.uk

@empirePropertyc

empire Property concepts

Residential development figure

Purchase price

- £180,000

Building and Development cost

- £360,000

EPC Fee

- £25,000

Total Cost

- £565,000

Gross rental income

- £166,400

(32 tenants*£100*52 weeks) Gross Yield from residential lettings units

- 29.45%

Property Valuation

- £1,300,000.00

Equity (cost minus value)

- £735,000.00

Equity Gain in Year One

- 76%

Notes: In relation to costs, there will be ongoing management charges to a lettings management agent at circa 10% of the income.

The utilities and council will be covered by the tenants themselves as these flats are fully self-contained and will have their own services. Also, a provision will have to be made for small void periods. In total, we estimate it will cost 15% of the income, inclusive of the management costs, voids and utilities, to cover all outgoings.

Net Annual Yield from Residential lettings units - 22% If you require any further information regarding this Property or if you have a specific budget in mind and you would like to achieve a similar yield then please don’t hesitate to contact us.

teL: 01302 564 263 FaX: 01302 564263 eMaiL: info@empirepropertyconcepts.co.uk

@empirePropertyc

empire Property concepts