Introduction
Lyttleton House, Birmingham
Student Accommodation investment within close proximity to various university campuses in Birmingham. All apartments will boast a free furniture pack and will be provided to the investor 'ready to rent'.
Lyttleton House, Birmingham is an existing purpose-built student residence, whereby a fourteen week scheme of refurbishment has been put in place which will bring the building up to the modern standards demanded by today's students. Refurbishment work is scheduled to commence end of June 2011 in readiness for January 2012 and the start of the 2nd semester for 2011-2012 academic year.
The apartments are priced at £42,000 and provide an assured NET rental yield of 8% for the first year. From year 2 onwards, projected rental yields are currently 9.6%.
The building will be fully managed by an independent management company with fixed management fees, whereby tenants will sign a 12 month rental agreement with the management company.
What's included?
- 1 Bedroom en-suite study apartment in small clusters
- 4ft bed (three quarter double size) with storage, wardrobe and work station
- State of the art shared Kitchen Diner in each cluster
- Lounge areas with LCD Satellite TV in each cluster
- Large laundry facilities with communal washing machines and tumble dryers
- High speed internet connections in all rooms
- CCTV and security phone entry system
Financials
Individual unit price £42,000
Year One - 8% assured NET return
Projected NET rental income year 2 onwards 9.6%
Individual 99 year leases
Quarterly income paid in arrears
Purchase Process:
Day 1 - £5,000 to reserve
On exchange of contracts - £16,000 payable
On Completion (on or before January 2012) - £21,000 payable
Security
Lyttleton House is an existing purpose-built student residence which does not require planning approval for change of use.
The developer is experienced in the construction field and has previously completed similar developments.
The majority of key university towns showed 100% occupancy rate for the last academic year with private halls mainly targeting affluent domestic, overseas and mature students.
Favourable payment plan, 50% of purchase price payable on completion.
Exchange monies are held by the developers lawyer and released in stages during the refurbishment to settle specific Lyttleton House related invoices as per the terms/intentions of the Agreement for sale between Buyer and Seller.
Building fully managed by independent management company with fixed management fees.
Tenants will sign 12 month rental agreement with management company.