Buy, Refurbish, Rent, Refinance: Sunderland

BRRR In Sunderland

We got creative with this one and saw opportunity where many didn't! We knew from the outset that the short lease on the property would put buyers off, perfect! Short leases don't scare us, but it is important to do as much research as possible before buying - we negotiated a deal subject to finding out the cost of extending the lease, and us being happy with the figure. 

​

Lease extension costs confirmed, we cracked on and pushed the purchase through so we could get to work transforming this spacious property. 

​

The lease wasn't the only creative touch - we also increased the bedrooms from two to three, adding significant value and appeal to the once tired and unloved space.

​

The numbers:

• Purchase: £50,000

• Stamp Duty: £1,500

• Legals: £1,500

• Refurb: £25,000

• Lease Extension: £1,500

• Sourcing Fee: £5,000

• Total Investment: £84,500

​

• Refinance Value: £100,000

• Cash Left In: £9,500

• Mortgage: £313pcm

• Rent: £700pcm

• Management Fee: £84pcm

• Net Income: £303pcm

• ROI: 38.34%