Case
Studies

Harefields Serviced Accommodation

Project Details

Investment Opportunity: Conversion of Town House to Serviced Accommodation (SA)

Location: Harefields, Oxford

Bedrooms: 4

Background

This 3-bedroom family townhouse is situated in a popular North Oxford location and benefits from many local amenities and excellent transport links with the Oxford main line station just one mile away. In addition, the main shopping area of Summertown is just 1 mile away and Oxford University is 2.5 miles.

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Our strategy was to purchase the property through a joint venture including Modus Portfolio Ltd and other private investors and convert the property into a 4-bedroom Serviced Accommodation (SA). By offering serviced accommodation on a short-term basis the property would yield a higher monthly income than a standard Buy To Let HMO.

The property required a complete programme of modernisation including conversion of the integral garage and ground floor into a kitchen, living space and shower room to allow the creation of a 4^th bedroom on the first floor.

The refurbishment was completed to a high specification and the property was granted an HMO license by the local authority shortly afterwards. The property now generates a monthly rental income of £4,500 and monthly cash-flow after costs of £1,137. The property has also been re-valued at £485,000 resulting in £65,450 capital left in the property.

Financial Overview
Purchase Price	£350,000
Purchase Costs	£21,200
Cost of Refurbishment	£55,000
Total capital outlay	£426,200

Monthly rental income	£4,500
Monthly costs	£3,363
Monthly cash flow	£1,137