HMO in high demand Croydon, South London

sold out

HMO in high demand Croydon, South London


Reserve this investment opportunity for £499

Figures in Brief:
Sale Agreed at: £360,000
Estimated Done Up Value: £430,000  (£485,000 with loft)
Cash Flow (BTL): £1544  -  £2019

Property Description:  A 3 bedroom house in Croydon South London needing full modernization throughout. It has an entrance hall, 3 reception rooms and 3 bedrooms. It is an ideal candidate to be refurbished and turned into a 5 bedroom HMO (subject to necessary consent) It has a large loft cavity which could be utilized for a 6th ensuite bedroom (up to new owner and planning approval). Ideally the 2 main reception rooms would be turned into bedrooms and the 3rd reception room next to the kitchen turned into a communal area to assist and comply with Licensing. 1 of  the original bedrooms adjacent the bathroom is large enough to have and ensuites to maximize value and rent.

Do to the condition it is unlikely to be bought on a Buy to Let mortgage so cash or Bridge into BTL mortgage would be necessary.

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Property Information:

Property Address: Northcote Road, Croydon, CR0 2HY

Number of Bedrooms (current):  3

Is there potential to add a bedroom?:  Yes

Reception Rooms: 3

Bathrooms/shower-rooms:  1

Property Asking Price: £375,000

Agreed Sale Price: £360,000 (to be secured only on Proof of funds, address and ID)

Fair Market Value (DUV): £430,000

Comparable 1: £550,000 3 Bed Semi (on market)

Comparable 2: £475,000 3 Bed Semi (on market)

Comparable 3: £470,000 3 Bed Semi (on market)

Comparable 4: £450,000 3 Bed Semi (on market)

Comparable 3: £415,000 3 Bed Semi (SOLD) £415,000 30 Oct 2018

55, Limes Road, Croydon, Greater London CR0 2HF (livable but not new condition)

 If no comparables, please state why there are no direct comparables:  No HMO properties sold comparables


Market Status: On Market

Is the property in a lettable condition: No

Is the sale price negotiable?:  No

Property Type: End of terrace

Freehold or Leasehold: Freehold

Is the property part of portfolio?: No

Exit Strategy 1: HMO

If HMO strategy please select:

Potential Target Demographic: White collar workers


Refurbishments Required

Estimated Refurbishment Costs: £45,000 dependent on finish. Up to £90,000 should the loft be undertaken

Need new front door
Tidy up garden
Rip out
Full rewire
Need new boiler
Need new central heating
Skim whole house top to bottom
Need new kitchen
Need new bathroom

Ensuite upstairs
Need internal HMO compliant doors
Need new skirting board throughout
Paint and decorate throughout
New flooring throughout

Fire system

HMO furniture would be extra

SMP do not have a team in place but can assist with enquiries for local tradesman and HMO management


HMO Figures (House Multiple occupation)

Purchase Price: £360,000
Refurb costs: ££45,000 - £90,000
Legal costs: £ 1200
Stamp Duty: £18,800

Survey: £ 540
Broker Fee: £400
SMP Consultation Fee: £4997
Rental Income: £3550 - £4400
New Mortgage (3.5%): £940,63

Estate Agent Rate (15%): £532
Management and Operating expenses MOE rate (10%): £532

CASH FLOW: £1544  -  £2019 (if the Loft is done)

Disclaimer : Perform your own Due Diligence. The ROI above is not a guaranteed return and is an indication of the potential based on achieving the relevant figures in all aspect of the purchase, refurbishment and refinance/resale. All figures will be subject to the buyers status and market fluctuations.


Area Description: 

Croydon is a large town in southern Greater London, England, 9.4 miles (15.1 km) south of Charing Cross. The principal settlement in the London Borough of Croydon, it is one of the largest commercial districts outside Central London, with an extensive shopping district and night-time economy.


Late nineteenth century railway building facilitated Croydon's growth as a commuter town for London. By the early 20th century, Croydon was an important industrial area, known for car manufacture, metal working and Croydon Airport. In the mid 20th century these sectors were replaced by retailing and the service economy, brought about by massive redevelopment which saw the rise of office blocks and the Whitgift Centre, the largest shopping centre in Greater London until 2008. Croydon was amalgamated into Greater London in 1965.


Croydon lies on a transport corridor between central London and the south coast of England, to the north of two high gaps in the North Downs, one taken by the A23 Brighton Road and the main railway line through Purley and Merstham and the other by the A22 from Purley to the M25 Godstone interchange. Road traffic is diverted away from a largely pedestrianised town centre, mostly consisting of North End. East Croydon is a major hub of the national railway transport system, with frequent fast services to central London, Brighton and the south coast. The town is unique in Greater London for its Tramlink light rail transport system.


The fine Print
SMP operates in trust with its potential investors. SMP is registered with the Property Ombudsman Group. SMP prides itself on delivering BMV deals with accuracy and confidence. The sourcing fee for this deal is £4997(inc VAT) which is paid on completion of the sale. A £499 deposit is required to secure the deal which is refundable if the investor decides not to proceed to an agreed sale with the vendor, ie after viewing. The deposit is not refundable if the investor pulls out of the purchase after sale agreed. 

SMP takes no responsibility if deals “fall through” for matters out of our control. It is always highlighted that property investment carries an element of risk and ultimately a deal may not be successful. There for deal owners are advised to carry out their own due diligence to confirm for themselves the findings SMP present. SMP has no control of the UK property market prices and investments can be lost or profit margins shortened with the fluctuating market