In early 2024, a first-time property investor with no experience started to work with
Savoys North to create a modern eight-bedroom House of Multiple Occupancy (HMO)
in Sunderland.
Following careful research and property selection by Savoys North, the purchase was
completed in July 2024, at a purchase price of £296,000, without the client having seen
the property in person. CPC Finance sourced a short-term loan from Shawbrook Bank
to cover the purchase price and the subsequent works, which Savoys North identified
as costing £60,000. By putting a charge on another property, the investor was able to
make this purchase without putting in any cash funds
The refurbishment phase, originally planned for four weeks, was completed in just two
weeks during the summer of 2024. This accelerated timeline was achieved through the
coordinated efforts of 16 different tradespeople working on site. Rather than undertaking
a full structural conversion, the project focused on the modernisation of the existing
space, which made the transformation faster and more cost-effective, costing only
£60,000.
By September 2024, the property was fully tenanted and now generates an annual rent
of £58,000 giving an annual net profit of £23,000 to the investor. The speed of the works
was crucial in minimising void periods and maximising return on investment. The
property received a valuation of £490,000 post-refurbishment. Through Savoys North
working with CPC Finance and Shawbrook Bank to secure a term loan of £367,500, the
investor was able to pay off the full short-term loan used to purchase the property, and
release the charge on the additional property.
Investor Ronnie Koldashi said, “I had to put a lot of faith in Savoys North because I
agreed to buy the house without having seen it or being involved in the refurbishment.
But it was a seamless process and thanks to Savoys North and CPC Finance, I
achieved my ambition to own my first property in 2024!”