Mixed-use building: licensed 5-room HMO with a let shop
Summary
- Asking price£195,000
- Rent when fully let£37,155 a year
- Net income after all costs£24,051 a year
- Let today (4 of 5 rooms and the shop)£31,215 a year
- Price per sqft (2,904 sqft in total)£67
- Wisbech area range per sqft£119 to £225
Yields are on the asking price and before the buyer's purchase costs. Area range: PropertyData, 30 November 2023.
The income
5 rooms and a shop, each on its own rent. Room 3 is empty today and is the upside.
| Unit | Per month | Per year | Today |
|---|---|---|---|
| Room 1 (double) | £495 | £5,940 | Let |
| Room 2 | £425 | £5,100 | Let |
| Room 3 (double) | £495 | £5,940 | Empty |
| Room 4 | £480 | £5,760 | Let |
| Room 5 (double) | £650 | £7,800 | Let |
| HMO rooms | £2,545 | £30,540 | |
| Ground floor shop | £551 | £6,615 | Let |
| Rent when fully let | £3,096 | £37,155 | |
| Shop electricity recharge | £130 | £1,560 | Paid |
| Total income | £3,226 | £38,715 |
The costs
Each running cost is the total billed in 2025. Letting and management is at the rate charged on the room rents.
| Cost | Per year |
|---|---|
| Council tax | £2,111 |
| Gas | £3,206 |
| Electricity | £3,094 |
| Water | £998 |
| Building insurance | £852 |
| Broadband | £297 |
| Cleaner | £646 |
| Certificates | £100 |
| Letting and management (11% of room rent) | £3,359 |
| Total costs | £14,664 |
| Net income (£38,715 less £14,664) | £24,051 |
Further key information
Income from 6 rents, not 1
5 room tenancies and a commercial lease. If 1 room is empty the other rents keep paying.
The shop lease
15-year lease from October 2018 to October 2033. The rent rises 5% every 3 years, next in October 2027. It is paid every April and October, and the October 2026 payment has been received.
Priced low per sqft
£195,000 across 2,904 sqft is £67 a sqft. The Wisbech range was £119 low, £147 average and £225 high on the PropertyData check of 30 November 2023.
Paperwork in place
HMO licence to 15 May 2029. EICR to October 2029. EPC D for the rooms and EPC E for the shop. Building insurance renewed to April 2027.
Management
A local letting agent runs the rooms today. Their contact details come with the sales pack.