Victorian three-bed,
Somerset
The deal in one paragraph
A Victorian three-bed terrace in the centre of a Somerset county town, walkable to the railway station — asking £170,000, no chain, and a full refurbishment project. Straight talk: with £45,000 of works loaded the ask returns 55% — below our line — and we say so. Quoted and bought at £150,000–155,000 it makes 60–62% ROI, with the best operating location on our book.
The angle
The refurb is the discount
full-project condition removes retail buyers; the trade price sits well below the ask and the seller has no chain to protect.
Best micro-location on the book
town centre + station on foot — contractor and professional nightly demand year-round.
Specified for purpose
a full refurb means the finish is designed for nightly stock from day one.
Underwritten as a plain BTL first
Every deal must stand up as a standard buy-to-let on market rent before any serviced-accommodation income is counted.
| At asking £170,000 | At our number £150,000 | |
|---|---|---|
| Refinance loan (75% of price + works) | £161,250 | £146,250 |
| Interest-only at 5.5% | £739 pcm | £670 pcm |
| Estimated market rent (verify locally) | £1,000–1,100 /mo | £1,000–1,100 /mo |
| Rent needed at lender stress (145% @ 5.5%) | £1,072 pcm | £972 pcm |
Income scenarios — good, likely, poor
Nightly-rate model for a 3-bed, shown at our £150,000 number. Net figures are after utilities, council tax and interest at 5.5% on the refinance loan. Cleaning, management and insurance sit outside this screening basis. All figures are projections, not guarantees.
| Scenario | Basis | Gross / year | Net / year |
|---|---|---|---|
| Good | £175 night · 90% occupancy | £57,488 | £44,654 |
| Likely | £175 night · 80% occupancy | £51,100 | £38,266 |
| Poor | £125 night · 50% occupancy | £22,812 | £9,979 |
Return on money left in
ROI is net annual income against cash still in the deal after the 75% refinance. Money left in = cash out (price + stamp duty + legals £1,750 + sourcing fee £3,000 + works £45,000) less the refinance.
Projected return on money left in at £150,000 — with the poor case still returning 16% and payback of the cash left in at roughly 19 months on the likely case. All costs loaded: no quiet exclusions.
Offer strategy & day-one cash
The position
Quote first: builder walkthrough before any number — the £45,000 is a moderate-spec estimate, and the offer moves pound-for-pound with the quote.
Day one, at our number
≈ £207,750 total day-one cash. Refinance releases £146,250 back, leaving £61,500 in the deal.
Open at £145,000, evidence-led: present the quote with the offer. Target £150,000–155,000. Above £155,000 the margin no longer prices a full project — walk.
What we verify before exchange
- Refurb quote. full builder walkthrough — roof, structure, damp, services. £45,000 moderate spec is the planning number, not the contract number.
- Refinance at cost. confirm lender appetite for post-refurb revaluation with the broker; model assumes 75% of cost only.
- Nightly rates. the town centre 3-bed — verify the £175/80% basis against live town-centre comparables.
- Permit parking. confirm permit availability and cost for guests/contractors — it affects the rate card.
- EPC and floor area. neither published; obtain both — area drives the works budget.
Fit & exits
Refurb, refinance, operate
Specify the refurb for nightly stock, refinance at cost after ~6 months, run on town-centre demand with placement upside.
Refurb and resell
A finished three-bed by the station resells to the full market; the trade discount plus a clean refurb is the margin. Fall back: single let at £1,000–1,100.
As with every deal we sell, aftercare is built in: a company let from the buyer at a guaranteed rent, or ongoing placement of bookings. You're buying the deal with the operating route attached.
Photographs — under wraps
The photograph set — and the address — are held back while the deal is live. They identify the property, and protecting a live deal is part of what you're paying for. Accept the deal and the full set is released the same day.
Released on acceptance
Released on acceptance
Released on acceptance
Proof of funds, our sourcing terms, and the fee agreed â then you get the street, the door, and the full photograph set the same day. Straight talk: if the numbers above don’t work for you, the address won’t change that.
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