This property showcases our planning strategy of converting a 3-bedroom terraced house into a large 8-bedroom HMO.

Our plan involves converting the rundown terraced house into a high standard large 8 person professional HMO through change of use of C3 to C4 and application for Sui Generis.

Our strategy involved:

• Utilising Permitted Development (PD) rights to change of use from C3 to C4 (Small HMO) first to establish use of the property as a 6 person HMO, then
• Applying for Sui Generis use class to increase the number of occupants to 8 persons.

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The planning application was granted on March 2021. By adopting this strategy instead of pursuing approval straightaway for a large 8-person HMO directly, we bypassed the complexities associated with extensive planning applications.

We carried out a very extensive refurbishment throughout, including the creation of the loft and the lowering of the ceiling of the first floor to create 3 additional large bedrooms and two bathrooms on the top floor which allowed us to increase the size of the property by 50%.

With the strong rental demand in the area in mind, we have kept this property in our portfolio to gain from the rental income which gives us a total income per annum of £78,000.00 and a net yield of 31.20% per annum.

The property was purchased for £400,000 and approximately £128,842 was invested in refurbishment, legal fees and other expenses. In May 2024, we successfully sold the property for £890,000—an impressive profit of £361,158.