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Park Lane Macclesfield

Park Lane was an exciting project to have been involved in. Breathing new life into an empty office building through conversion into a professional house of multiple occupation (HMO). We secured the purchase of this building subject to planning before submitting an application for an office to 7 bedroom HMO application. Planning was granted in August 2019 and shortly after we sold the site on to another investor to complete the works.

Martin viewed the building initially with a view to converting to 3 flats but upon entering the building it became clear this project was suited to a HMO as it was already laid out as such with various small offices off a main corridor. The building has a large basement which would serve as a communal kitchen, dining, living area with access onto a rear patio. In the original application the ground floor was to be converted to 3 bedrooms but a second architect looked at the site and suggested that by removing the existing stairs, and extending the building to incorporate a new stairway you would be able to gain an additional bedroom. The first floor was to be converted to 3 bedrooms bringing this floor out inline with the rest of the building as well as converting the loft for the final bedroom to achieve 8 en-suite rooms.

The project was sold onto another investor for £140,000 and to the side are the numbers they would likely have enjoyed

Contact Us

0161 327 2789


Purchase Price £140,000

Deposit £91,000

Legals £1,000


Professional Fees £6,000

Conversion Cost £90,000

Development Finance £25,000

Total Investment £172,000

Capital Employed £81,000

8 Rooms @ £450 pcm £3,600 pcm

Annual Rent £43,200

Bills £600

Mortgage Payment £303

Letting agent (12%) £432

Council Tax £100 

Maintenance £100

Voids (10%) £360

Insurance £360

Total Bills £1,895 (£23,435)

Cashflow pcm £1,704

Cashflow p.a. £20,456

Gross Yield 30.8%

Net Yield 14.6%

Net Return on Cost 11.9%

ROCE 25.25%

Refinance (7x income) £302,000

Cash Left in £37,777

Cashflow pcm £1,252

Cashflow p.a. £15,064

Yield against value 14.3%

Return on cash left in 41.5%

Park Lane Plans.JPG

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