Scarborough, YO11 2SE | Investment Property for Sale | VES-YO11-001

Opportunity to purchase a 30-bed HMO & a 3-bed bungalow in Scarborough generating a gross yield of 14.7%

£1,200,000

HMO + bungalow

VES-YO11-001

INITIAL INVESTMENT

£402,250

Based on

deposit: £300,000

stamp duty: £99,750

mortgage fees: £1,500

conveyancing fees: £1,000

GROSS RENT

£176,532

GROSS YIELD

14.7%

ADD TO FAVOURITES

The property

TENANCY

Tenanted

TENURE

Freehold

33 bedrooms

31 bathrooms

6 reception rooms

TBC

Fully Furnished

Opportunity to purchase a freehold property that features a 30-bed HMO and a 3-bed bungalow.

Due to the current coronavirus lockdown the vendor offers to continue managing the property for 12 months from completion free of charge to give the new owner time to put new management in place.

Property information

  • 30-bed HMO
  • Plus a 3-bed bungalow to the rear of the property
  • This former hotel was granted planning in 2010 for use as a student HMO
  • In 2018 a planning change was granted to allow open HMO use
  • The property is fully licenced for 30 occupants
  • No structural changes were made to the building
  • A new roof was fitted approximately 9 years ago
  • There is parking for 10 cars with additional on-street resident parking, subject to tenants obtaining a permit
  • The laundry is coin operated which generates several hundred pounds of extra income per year
  • The property comes with bio-mass boilers that generate additional income through the Renewable Heat Incentive, a UK Government scheme; see details below
  • EPC rating A

HMO layout information

  • Spread over 5 floors
  • Fully licenced
  • All 30 bedrooms come as en-suite
  • There are 2 shared kitchens
  • There is 1 shared laundry room
  • On the ground floor are 3 large areas which are used by tenants as common areas
  • A secure bike store is also located on the ground floor
  • There is also an office for the property manager

Bungalow information

  • Located to the rear of the HMO property
  • 3-bed bungalow
  • Fully let
  • EPC rating D

Rental income

  • As of end of March 2020 there were 2 vacant units which are advertised to let; vendor anticipates to be fully let by April 2020
  • Once fully let the rental income is £12,850.48 pcm; £154,205.76 pa
  • The vendor also receives an income from the installed bio-mass boilers
  • This income is variable; confirmed income for the period of December 2018/2019 is £22,326
  • The vendor additionally receives an income from the coin-operated laundry facilities, which adds several hundred pounds per year

Based on the additional income of the bio-mass boilers and the property being fully let the expected income is:

  • Total expected income pcm £14,710.98
  • Total expected income pa £176,531.76 + income from coin-operated laundry

Property potential

There is potential to increase the number of bedrooms by 5, subject to planning. These could all be large double rooms with en-suites.

Notes

Please note that Vesta has not visited this property and that all material has been provided by the vendor.

Floorplans

Documents available on request, please contact for viewings or further questions.

The information relating to this property is supplied by the vendor and was the latest available information at the time of listing. Certain information may expire or become inaccurate over time.

Vesta makes no warranty as to the accuracy or completeness of the property listing or any associated information. All information should be reviewed by the purchaser and their solicitor.

About Scarborough, North Yorkshire

Scarborough is a town on the coast of North Yorkshire, England. It lies around 42 miles north-east of York, 44 miles north of Hull and 49 miles south-east of Middlesbrough.

There are four major roads connecting Scarborough to other major towns and cities. The A64 links it with Malton, York, Leeds, as well as the A19 and the A1(M). The A165 is a coastal rout that goes to Filey, Bridlington and Hull, whilst the A170 connects it to the North York Moors and Thirsk. The A171 is another coastal route leading to Whitby and Middlesbrough.

The town is also very well connected via the railway network. Scarborough railway station is located close to the centre of town and runs services from York, Leeds, Manchester and Liverpool on the North TransPennine Express as well as from Hull on the Yorkshire Coast Line.

Scarborough has a lot of activities to offer, such as the waterpark Alpamare, two beaches which are great for surfing or walking. South Bay comes with arcades, ice cream parlours and shellfish stalls, whilst North Bay is a more peaceful beach and is home to Peasholm Park. One can also go on a number of walking and cycling routes that go through the town and along the coastline. There are two golf courses in Scarborough with great views as well as several crazy golf courses. The Rotunda Museum offers a trip back in time and houses a variety of dinosaur artefacts, whilst Scarborough Castle holds historic significance and has stunning views of the coast.

The town centre offers a wide variety of shopping including High Street favourites as well as independent boutiques and eateries. The Brunswick shopping centre can be found in the main pedestrianised shopping street. There is also an indoor market for antiques and independent traders. Whilst Boyes, a discount department store, is located in Eastfield, on the outskirts of town.

The fishing industry is still very much active in Scarborough, although much smaller than it used to be. Locals can purchase the fresh and locally caught seafood at the fish market by the harbour. SeaGrown is one of the local employers and is a seaweed farm and processing company. The company grows its own seaweed in a special area off the coast of Scarborough and are looking to expand into the bioplastics industry in future. Other industries include McCain Foods, Sirius Minerals and Plaxton Company. Scarborough General Hospital is the largest employer in the area with over 2,400 staff. And of course tourism also plays a major part in the local economy, with Scarborough being the second most-visited destination in England by British holidaymakers.

Scarborough has six state secondary schools, is home to Scarborough University Technical College, as well as the private school Scarborough College. Scarborough International School of English offers English language courses for students from around the world. Further Education is provided by Scarborough Sixth Form College and Yorkshire Coast College. The Coventry University Scarborough Campus opened in 2015 and there is also a campus of the University of Hull’s School of Arts and New Media.

Filey Road,

Scarborough,

North Yorkshire,

England,

YO11 2SE

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