HMO

35 West Road

6-bedroom supported living HMO conversion — post-auction purchase at £105k.

Derbyshire
HMO
6 beds
6 baths
Upcoming
£105k Purchase
£260k Est. GDV
£62k Renovation

Property Details

Type
HMO
Bedrooms
6
Bathrooms
6
Strategy
HMO
Timeline
In pipeline

Why This Deal

A post-auction purchase at £105,000 with a clear conversion thesis. The property already has 6 bedrooms, one ensuite, and 3 individual bathrooms — the layout is well-suited to a supported living specification without requiring major structural alterations. The estimated GDV of £260,000 and projected 75% LTV mortgage of £195,000 give the deal strong refinance headroom. Supported living tenancies offer above-market rents, longer tenancies, and reduced void risk compared to standard HMO lets.

Financials

Investment breakdown

Purchase Price £105k
Renovation Cost £62k
Total Investment £167k

Scope

What we did

Conversion to supported living specification — 6 ensuite bedrooms, communal kitchen/dining, living room, and on-site staff office.

  • Convert existing bedrooms to 6 ensuite rooms
  • New communal kitchen and dining room
  • Separate communal living room
  • On-site staff office
  • Full renovation to supported living specification
  • Fire safety and compliance upgrades

The Opportunity

35 West Road is a 6-bedroom property purchased post-auction for £105,000. The property already has 6 bedrooms, one ensuite bathroom, 3 individual bathrooms, and a communal kitchen — giving it a layout that maps directly onto a supported living HMO specification with relatively contained conversion works.

The Strategy

The conversion will transform the property into 6 ensuite bedrooms with a communal kitchen/dining room, a separate living room, and an on-site staff office — meeting the specification required for supported living tenancies. Each existing bedroom gains its own ensuite, the communal kitchen is reconfigured as a kitchen/dining space, and one room is designated as a staff office for the care provider.

Supported living contracts offer several advantages over standard HMO lets: above-market rental income, longer and more stable tenancy agreements, and reduced void risk. The renovation budget of £62,000 covers the ensuite installations, communal area upgrades, fire safety compliance, and finishing works.

The estimated gross development value of £260,000 supports a refinance at 75% LTV — returning £195,000 against a total investment of approximately £167,000.

Outcome

The results

Deal in pipeline — purchased post-auction with renovation targeting supported living accreditation and projected 75% LTV refinance at £195,000.

  • Estimated GDV of £260,000
  • Projected mortgage at 75% LTV — £195,000
  • 6 ensuite bedrooms for supported living tenants
  • Above-market rental income from supported living contracts

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