The house was a personal purchase as a home for a short time with service accommodation in mind for future rentals. We had lived in the Lancing area for a while and knew the price point was good for finding a cheap property to renovate and create income from a section of the house.
This Semi-Detached 4 bedroom, 2 bathroom 1930’s property offered plenty of space. It had an easily separated side extension which would become “The Annex”, a separate rental space. As with all of our purchases and projects, it was in desperate need of renovation. My partner wanted to tackle this project to create a unique space. Again, we used qualified tradesmen for all areas of specific needs.
Every single part of the property was dismantled, demolished and rebuilt internally. The sunroom was rebuilt into a rear extension of the kitchen. The small, unusable attic space was completely removed and restructured to create a luxurious break room for relaxing. The entire ground floor was gutted and the current joists and I-beams were reinforced with Old Pier columns, originally from Devon. We then added a small utility/shower/toilet room.
We found this to be a fairly unproblematic build, some of the problems were:
The entire renovation was completed in 5 months alongside another smaller project. We managed to create a 3-4 bedroom, 2 bath home with a separate annex studio apartment.
After completion, both the house and Annex spent a summer as serviced accommodation properties, while we took the summer off and they both performed amazingly well. When Covid-19 stopped holiday lets, we decided to take on a full time tenant while we lived in the house again ourselves.
During the Covid-19 pandemic, we made a life-changing decision: We moved to France and took on a full-time tenant in the house.
These figures are based on 2 sets of full time tenants.
As it was a personal investment, it was a far simpler process with standard finance. JLH invested £195,300 of their own capital with a standard mortgage of £207,000. With a total gross income of £26,400 and a net income of £17,100. JLH earn a NET Return On Cash Invested of 8.8% p.a. The property price has now been valued at £450,000 which means the property value has increased by £47,000.
