STRATEGY 1
Buy on deferred consideration, refurbish the flats and hold
72% CONFIDENCE▽
Purpose: Use vendor finance or deferred consideration to acquire with less upfront equity, refurbish and let both flats, regularise the commercial leases and retain the stabilised mixed use income.
HOW VALUE IS CREATED
Residential vacancy recovery converts two non income producing flats into rent.
MAIN RISK
The £1,000 monthly cashflow hurdle is not demonstrated after finance, operating and refurbishment costs.
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⊘ Strategy Selected
STRATEGY 2
Assisted sale: refurbish, let and resell the stabilised asset
59% CONFIDENCE▽
Purpose: Control the property under a secured assisted sale agreement, fund and manage the flat refurbishment and lettings, regularise the commercial income, then sell the whole investment and share the uplift without funding the acquisition price.
HOW VALUE IS CREATED
Control without immediate ownership avoids tying up capital in the full purchase price.
MAIN RISK
Capital is exposed in an asset the investor does not own unless protected by robust security and sale powers.
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⊘ Strategy Selected
STRATEGY 3
Refurbish and title split the flats, then retain the commercial investment
47% CONFIDENCE▽
Purpose: Acquire conditionally or with deferred consideration, refurbish the flats, create saleable long leasehold titles and dispose of them individually while retaining the commercial freehold and income.
INCOME POTENTIAL
Meaningful
HOW VALUE IS CREATED
Title separation exposes residential owner occupier values rather than blended mixed use investment pricing.
MAIN RISK
The title, access, services and fire separation may not permit clean subdivision.
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⊘ Strategy Selected