1. Property Investment
Opportunity
Property
Description
Freehold, 4 bedroom terraced property with 2 reception rooms,
cellar, 2 bathrooms and potential for refurbishment and
subsequent rental in a desirable and upcoming area of the City.
Area / Postcode 37A Walton Park Walton L9 1EY
Price: On the market for £99,950
Presented by:
Oxygen Property Partners Ltd.
54 St. James Street, Liverpool, L1 0AB
0151 434 4553 • invest@oxygenpropertypartners.com • oxygenpropertypartners.com
About Oxygen Property Partners Ltd
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2. Oxygen Property Partners Ltd helps clients create wealth and secure their financial future through intelligent
property investment. Focusing on Liverpool and working exclusively on behalf of private investors and utilising
only private capital, we source investment property for professional investors, portfolio holders, and landlords
with which to start or build high-performing property portfolios.
a. About the Property and Vendor
This property has been marketed as 4 bedroom, 2 reception room and 2 bathroom terraced property. There is
potential to turn the property into 6 bedroom HMO. Total floor area is 144m2
excluding the basement. The
home energy performance certificate indicates that the energy efficiency is a very poor G-rating (gas and
windows both rated G); however there may be some financial assistance with energy saving measures. E.g.
British Gas loft insulation is provided free of charge and the Energy Saving Advice Team share information
about locally funded grant schemes.
b. About the Location
Properties are mainly terraced houses or flats and are mortgaged or privately rented. People will typically have
lived here less than 10 years.
Closest Hospitals Local Transport Links
• Walton Hospital - 0.4miles
• Mersey Care NHS Trust at Aintree Hospital -
1.4miles
• University Hospital Aintree - 1.4miles
• The Walton Centre NHS Foundation Trust - 1.5
miles
• The Birkdale Clinic Crosby - 2.8miles
• Walton Merseyside Train Station
• Rice Lain Train Station
• Orrell Park Train Station
• Bootle New Strand Train Station
• Aintree Train Station
• Kirkdale Train Station
• Seaforth and Litherland Train Station
Closest Airports Local Hotels
• Liverpool Airport - 10 miles SE
• Hawarden - 19 miles S
• Blackpool Airport - 22 miles N
• Manchester Airport - 29 miles E
• Orrell Park Hotel - within a mile
• Breeze Guest House - within a mile
• Premier Inn Liverpool (Aintree) - 1 mile N
• St Hilda Hotel - 2 miles S
• Stanley Park Hotel - 2 miles S
• The King Harry Bar & Hostel - 2 miles S
• The Knowsley B&B - 2 miles SW
• Regent Maritime Hotel - 2 miles SW
• The Park Hotel - 2 miles N
• Premier Inn Liverpool North - 2 miles N
• Throstles Nest Hotel - 2 miles S
• Sheil Suites - 3 miles S
Nearby Points of Interest
• Stanley Park - 2 miles S
• HM Prison Liverpool, 68 Hornby Road, L9 3DF (6 minute walk from Walton Park)
• Liverpool FC (stadium) - 2 miles S
• West Derby Castle - 3 miles SE
• Ashton Building, home to University of Liverpool Computer Science Department - 3 miles
• Liverpool (Tower) - 4 miles S
• Liverpool Echo Arena (Stadium) - 4 miles S
• Sefton Park - 5 miles S
• Halton Castle - 10 miles NE
• Royal Birkdale Golf Club (golf course) - 12 miles (Source Scout Local)
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3. Social Classification
The common social group in this postcode is A, B, C1, D
A= Professionals such as doctors, lawyers and dentists, chartered architects and engineers.
B= University lecturers, heads of local government departments, executive officers of the civil service, middle
managers, qualified scientists, bank managers, police inspectors and senior ranks of the armed services.
C1= Nurses, technicians, pharmacists, salesmen, publicans, clerical workers , clerical officers within the civil
service, police sergeants and constables and senior non-commissioned officers within the armed services.
D= Semi-skilled and unskilled manual workers, including labourers and people serving apprenticeships; clerical
assistants in the civil service, machine minders, farm labourers, laboratory assistants, postmen and all other
members of the armed services.
There are only a small number of children living in the area and the typical age of adults is between 20 and 44
years.
(source: Scout Local)
c. Occupations of all people in employment
• Elementary occupations 24.5%
• Skilled Trades occupations 17.8 %
• Administrative and secretarial occupations 11.4%
• Professional Occupations 9.4%
• Process, plant and machine operatives 8.3%
• Caring, leisure, and other service occupation 8.2%
• Associate professional and technical occupation 7.9%
• Sales and Customer Service occupation 6.9%
• Managers, Directors, and senior officials 4.7%
(source: ONS March 2011)
d. Credit Score for this postcode (based on the Cameo Financial Risk is 760 – UK average is 860
(one bad account in every 7 accounts).
e. Other Information for this postcode
Most people read a newspaper such as the Telegraph, The Times, the Independent or the Guardian and the
level of internet usage is high. Response to mail order companies is very low. There is a low level of car
ownership and when travelling to work people tend to use a mixture of different transport. (Check my file)
f. Vision
This property could be converted into a 6 bedroom HMO excluding the cellar which could be a TV room, or
possibly another bedroom. It would appeal to professionals in the local hospital, staff at the local prison. There
are numerous employers in the area which makes it very attractive for multi-let accommodation. There is scope
to fit an additional en-suite bathroom.
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4. g. Suggested Offer
• £70,000 - £75,000
Recent discussions with the Agent indicate the vendor is considered likely to accept an offer around £70,000.
The property was purchased at auction for £55,000. We believe that the seller has started but failed to
complete a programme of refurbishment due to lack of funds.
h. Purchasing Options
We believe a bridging loan would provide 70% of the funds.
• 70% bridge on £70K = £49,000
• 30% Cash = £21,000
• Refurb = £34,400
Alternatively a light refurb product BTL mortgage for HMOs could work well. An outright cash purchase would
secure the property quickly and reduce the time it takes to achieve financial assistance.
i. Rental Demand and Letting Potential
The rental demand is very good in this area. The number of rooms for rent available in L21 = 5.
Rooms wanted in L21 = 344
(source: Spare Room).
j. Rental estimate
• Studio flat in the area rents out at £350pcm
• 3 bed family let £675 per month
• 4 bed family let £750 plus per month
• Room rents range from £80 to £110 for high quality accommodation.
k. Cashfow
• Lowest £750 per mth family let / £9000 p.a
• Highest £2,145 Gross / Net Cash flow £1064.50 on HMO PCM
l. Refurbishment Options
Option Description of Possible Refurbishment Approximate Cost (£)
1 New double glazing at the back of the house and front (potentially) 4000
2 Back garden cleaning and rebuild decking 800
3 Kitchen new appliances and redesign 1500
4 En-suite room in loft room redesign, new en-suite 1000
5 Plastering work, skimming, redecorating, stripping wall paper, 5000
6 Fix the leak and damp 1000
7 New boiler, radiators, fitting 2500
8
Make the whole house HMO compatible (fire doors, smoke alarm, license
etc.)
3500
9 Some parts of the house need new flooring 1500
10 Furniture and soft furnishings etc. (HMO) 5000
12 Front garden trim 500
13 Back door 100
14 Professional fees/architect/project manager/interior design 3000
15 Contingency 5000
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5. Total
34,400
m. Comparables
15b Walton Park
4 bed semi
Sold £125,000 in August 2014
20 Walton Park
Semi – bedrooms unknown
Sold £100,000 in May 2015
7 Walton Park
5 bed semi
Sold £230,000 in June 2014
28 Walton Park
4 bed semi
Sold £67,000 in 2012
There are currently 221 homes for sale in L9 with an average asking price of £122,514
(source Zoopla)
Summary
This is an ideal investment opportunity for an experienced landlord, who will be seeking to purchase either
single or multi let property and be keen to add value through a programme of refurbishment.
The property is situated in a desirable area and would suit working tenants commuting to the city centre or
operating locally within the nearby prison or hospital.
We anticipate the seller would accept a low offer given his current situation.
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6. Financial Forecast
Purchase price £ 70,000.00 £ 75,000.00
Deposit 25% £ 17,500.00 £ 18,750.00
Mortgage required £ 52,500.00 £ 56,250.00
One off Costs
Legal Fees £ 500.00 £ 500.00
Survey £ 500.00 £ 500.00
Oxygen sourcing fee for HMO (5%) £ 3,500.00 £ 3,750.00
Refurb Costs £ 34,400.00 £ 34,400.00
£ 38,900.00 £ 39,150.00
Money In (deposit and one off costs) £ 56,400.00 £ 57,900.00
COSTS
Mortgage cost per year 6 % £ 3,156.00 £ 3,456.00
Voids and Maintenance at 15% per year £ 4,446.00 £ 4,446.00
Letting and management 10% £ 2,964.00 £ 2,964.00
Bills per year £ 6,000.00 £ 6,000.00
Building Insurance £ 300.00 £ 300.00
Total Costs £ 16,866.00 £ 17,166.00
Rental Income for 6 beds @ £95 per room £ 29,640.00 £ 29,640.00
Less costs £ 16,866.00 £ 17,166.00
Net profit per year £ 12,774.00 £ 12,474.00
Net profit per month £ 1,064.50 £ 1,039.50
Return on Investment
Annual Net Profit £ 12,774.00 £ 12,474.00
Money In £ 56,400.00 £ 57,900.00
Return on investment = annual profit / invest x
100
23% 22%
Assuming your refinance at £120,000 after refurb 50% ROI
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