
Mid Terrace - Wigan
- Project by
- Private Client
- Objective
- Both — rental income now, with value added through the refurbishment.
- Initial condition
- Tired and unloved when purchased: the front was overgrown and the garden was full of waste.
- Work completed
- Fully refurbished internally and externally — including a new front door, new windows, and the front garden cleared, re-gravelled and fenced.
- Challenge and how it was handled
- Years of neglect meant the works went beyond cosmetics. We priced the refurbishment before exchange so the total cost was known and the numbers still stacked.
| Figure | Projected | Actual |
|---|---|---|
| Purchase price | - | £95,000 |
| Stamp duty (5%) | - | £4,750 |
| Refurbishment | - | £25,000 |
| Total cost | - | £124,750 |
| End value (revaluation) | - | £125,000 |
| Refinance (75% of end value) | - | £93,750 |
| Money left in | - | £31,000 |
| Monthly rent | - | £875 |
| Net rent (after 7% management + 5% costs) | - | £9,240 / yr |
| Net yield (on total cost) | - | 7.4% |
| ROI (money left in) | - | 30% |
Verified outcome: bought for £95,000 with £4,750 of stamp duty and £25,000 of refurbishment — £124,750 all in. Revalued at £125,000, then refinanced at 75% (£93,750), leaving £31,000 in the deal. Let at £875 a month (£10,500 a year); after 7% management and 5% for other running costs that is £9,240 a year — a 7.4% net yield on the total cost, and a 30% return on the money left in the deal. Excludes finance interest, legal and buying fees.