HMO’s are valued very differently to ‘residential family homes’ in most cases. We take in consideration the income, the ‘business’, the value in the AST’s and conversion and factors such as Article 4, planning, licensing and the tenant demand. The condition of the property plays a key part too. Usually, these variables produce an attractive ‘gross yield’ for Investors which is calculated by dividing the full annual income by the purchase price. This is a very generic overview, but it may be worth checking out our ‘Yield Map’ which gives an outline of yield expectations in areas across the UK.
VALUTATION – First thing first, you want to know that you would be happy with the price in which we feel we could achieve for the property. One of our valuers will visit the property or carry out an over the phone appraisal. Based on this conversation, financial information provided and our thorough due diligence, we will provide you with a property valuation and a marketing plan for your asset. You of course are free to ask any questions you wish and we will answer as thoroughly as we can.
COMPLIANCE & CONTRACTS – If you are happy with our valuation then it’s time to get the admin done. Our Compliance & Contract department will be in touch to carry out the legally required Anti-Money Laundering checks and issue you with our Sole Selling Rights Contract (SSRC).
LISTING – Once the admin is out of the way it’s time to get down to the nitty gritty. Our Lister / Sales Broker will be in touch asking for in depth financial information, tenancy schedules, historical occupancy data and other information in which we expect Investors to ask for. This may seem a lot of work now, but it will save a lot of time ‘too-ing and fro-ing’ when the property hits the market. We will create our marketing material and send it over to you for sign off before the property is listed for sale. Once this has been given the go ahead, we will market the property in all the methods agreed at Valuation stage.
BROKERING – Once the property has hit the market you should expect requests for further specific information requested from interested parties along with viewing requests. Please do not worry – we ensure to ‘vet’ all parties who have requested a viewing before we arrange this and therefore we know the viewer will be proceedable should they wish to commit. Any offers made will be presented to you both over the phone and in writing and it is up to you as to whether you choose to accept, decline or negotiate these offers. When we find an offer that suites, we will progress to Offer Agreed!
SALES PROGRESSION – Once an offer has been agreed we will ask the Buyer to commit to the purchase with a £1,000 + VAT (or 1% + VAT for international Buyers) Reservation Fee. We will sign commitment contracts with the Buyer and carry out the necessary AML checks on them. If all is as it should be our Sales Progression Team will issue the Memorandum of Sale to yourself, the Buyer and both legal teams. The Sales Progression Team will ensure that the sale progresses efficiently and in a timely manner and logistically manage access requests and communication with legal teams, Surveyors, brokers and Lenders where necessary. This should lead to a timely completion of your sale!