Three-bed semi, big garden,
Somerset
The deal in one paragraph
A three-bed semi with a big garden and driveway in a Somerset county town — £185,000, reduced, no chain, and steel-frame construction. That frame is the whole story: it scares mortgage buyers (the discount) and it narrows the refinance market (the risk). Straight talk: this deal is gated on written lender confirmation before any offer. With it, £175,000 returns 60% ROI on the full model; without it, there is no deal — and we’d rather tell you that here than after your survey.
The angle
The frame is the discount
retail buyers and their lenders flinch at non-standard construction; cash collects the fear premium.
Biggest 3-bed on the book
89.5 m², utility, big garden, driveway — space that earns at the top of the range.
Honestly gated
no lender letter, no offer. The order of operations is the deal.
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 £185,000 | At our number £175,000 | |
|---|---|---|
| Refinance loan (75% of price + works) | £153,750 | £146,250 |
| Interest-only at 5.5% | £705 pcm | £670 pcm |
| Estimated market rent (verify locally) | £975–1,075 /mo | £975–1,075 /mo |
| Rent needed at lender stress (145% @ 5.5%) | £1,022 pcm | £972 pcm |
Income scenarios — good, likely, poor
Nightly-rate model for a 3-bed, shown at our £175,000 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 £20,000) less the refinance.
Projected return on money left in at £175,000 — with the poor case still returning 16% and payback of the cash left in at roughly 20 months on the likely case. All costs loaded: no quiet exclusions.
Offer strategy & day-one cash
The position
Gate one — the broker: written confirmation of steel-frame BTL refinance appetite, LTV and rate, from the investor-only lending list. Before any offer, no exceptions.
Day one, at our number
≈ £209,500 total day-one cash. Refinance releases £146,250 back, leaving £63,250 in the deal.
Then open at £165,000, citing construction type and works; target £170,000–175,000, ceiling £175,000.
What we verify before exchange
- Refinance appetite — the gate. named lenders, LTV, rate, and any structural-survey condition, in writing from the broker.
- Frame survey. specialist structural survey of the steel frame (BISF-type or otherwise) — corrosion at ground level is the known issue.
- Works scope. £20,000 modernisation budget walked and quoted.
- Rates and rent. standard 3-bed basis against live local comparables; £975–1,075 rent confirmed.
- Insurance. confirm buildings cover terms for the construction type — it affects both operation and resale.
Fit & exits
Operate
Modernise and run as 3-bed SA — space, garden and parking suit families and contractor groups; motorway-junction demand on the doorstep.
Single let / hold
Plain BTL at £975–1,075. Resale exit is thinner than standard stock (same frame problem we bought at a discount) — this is a hold-and-income deal, priced as one.
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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