PM SPV 70

Tenanted 2 Bedroom Semi-Detached

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Deal Size £54,870
Investors 239
Funded 100%
Invested £54,870

About this property

  • 2 Bedroom, Semi-Detached property in Esh Winning, Durham
  • The property is currently tenanted at £375 per calendar month, meaning investors will earn rental income as soon as the property is acquired
  • The property has been secured at £44,000 (including a £2,000 renovation fee) which equates to discount of 35.2% to the independent RICS market value

The property benefits from relatively new double glazed windows and UPVC door, combi-boiler gas central heating and off road parking. On the ground floor is a spacious lounge area and a separate fully fitted kitchen, which has recently been updated and a separate utility room. There are two double bedrooms upstairs and a family bathroom, which includes an over bath shower. The property also comprises of both a front and back garden, which is south facing and neighbours similar properties within the cul-de-sac that benefit from parks and greenery in the close vicinity.

The property is in good rentable condition and currently tenanted on an AST (Assured Shorthold Tenancy) for a monthly sum of £375. Although the property is tenanted, we have provisioned a budget of £2,000 to complete work either at the point the property ever becomes vacant or if the tenant remains, at the point of property sale to ensure we can benefit from the greatest uplift in value at sale. The £2,000 renovation cost will be used to modernise the property with new decorations including carpets and painting throughout.

The property is located in Esh Winning, a quaint village just less than a fifteen-minute drive to Durham city centre. The main local amenities can be reached within a short walk, including the local supermarket, Lloyds Bank and local library, as can the local bus station. For larger amenities, Durham city centre, including the Unesco World Heritage site, Durham Castle can be reached within a 15-minute drive east, via the B6302.

A RICS survey carried out on 11th November 2016 values the property at £68,000, which equates to the property being purchased at a discount of £24,000 (35.2%) to the market value (this is including the £2,000 renovation fee).

The Royal Institute of Chartered Surveyors have predicted a 3% property price increase for the North East which is used in our projected return calculations. You can see more information on our blog post HERE but please remember that property prices can go down as well as up.

There is an additional ‘Acquisition cost’ (shown as 'Furniture cost') which represents a finance fee paid to PMF A Ltd, and property management disbursements (auction fee, inventory, checkout, inspection, visit). This structure can provide access to new routes of property sourcing at large discounts. In addition, a monthly Accounting Fee and Corporate Governance fee of £10 and £25 respectively has been factored into the rental yield calculation (this is shown as an annual 'Service Charge' cost and represents £420 of the total).

Please bear with us while we update the names of these fields on the website. To confirm, the projected returns are net of these fees. There is no British Gas utility cover on this property, and the insurance cost of £234.46 per annum reflects the landlord insurance, which is put in place on all investments and also now benefits from a rent recovery option in the unlikely instance that a tenant may withhold payment of rent.

About the area

The property sits within a fifteen minute drive to Durham University, which is a popular choice for students after topping a student quality of live survey in 2013 . Furthermore, in 2015, the University was named the best value for money in the country for students pursuing further education, and the University continues to provide the best for its students, recently investing £60 million through The Durham Project, which aims to strengthen the facilities and opportunities open to the students. Given the numerous attractions, it comes with little surprise that the University has ranked in the top five universities in the UK for the past seven years.

The region is also home to growing technology businesses such as Atom Bank, the UK’s first exclusively digital bank that has chosen the North East as the new headquarters for the company and aim to host 400 employees in the area by 2020. With a recent investment of £45 million from Spanish banking group, BBVA, it is improving the fintech opportunities for future generations and is already creating synergies with Durham University by giving students the opportunity to work for the company. Due to the job opportunities available, it comes with little surprise that the North East is a popular choice for students, as evidenced by Durham University topping a student quality of life survey in 2013.

Following the previous Chancellor’s 2016 budget, there is a clear emphasis on narrowing the North and South divide by investing £20 million a year in the Northern Powerhouse schools to ensure a prosperous future for the next generation and to provide locals with the knowledge and confidence to explore the world of work. This plan coincides with projections by the government to improve the employment rate from 67.4% to 73% employment rate by 2030.

In addition to the interesting history and a thriving economy, Durham has some breath-taking scenery. Indeed, the University itself was ranked the 3rd most attractive University in the UK in 2014. Renowned events, such as BRASS, the international brass festival, which is in its 10th year will also continue to attract visitors to the area.