Our new clients owned a second-floor, two bedroom flat in a purpose built block in Marylebone. This was used by their daughters when they went to university in central London and subsequently let out. They recognised that the fiat was very tired and were keen to carry out renovation work and make the asset ‘work harder’.
They had increasingly suffered low calibre tenants, equally low rents, above average void periods and poor property management. Therefore, through a friend’s recommendation they sought advice through LCP to resolve these issues, improve rental income and maximise the potential returns from their investment.
As they were based in Hong Kong, LCP’s unique ‘one-stop’ service, specialising in central London rental investment, appealed as it offered them a hands-off but expert approach.
The Existing Property pre-refurbishment
Large, tired flat, 1,057 sq. ft. in a purpose built block
Two bedrooms, one bathroom, large self-contained kitchen
Location: Marylebone Rent per week: £530
Long lease (80+ years) or Share of Freehold
- Search area:
- Specific preferences:
Three bedrooms, two bathrooms, to appeal to the sophisticated rental market
- Purchase price budget:
The final selection
Our in-house design and refurbishment team were able to provide a full specification and budget to create the right product for the market. In collaboration with our letting and property management departments they assessed the potential uplift in rent to develop a strong financially-focused investment strategy.
LCP’s in-house design team manages each project from the perspective of creative planning within stringent budget guidelines. CAD drawings are developed, optimising space utilisation, detailing furniture layouts and any structural modifications. A full schedule of works and cost breakdown is presented for client consideration and once agreed, the project is monitored closely with regular on-site inspections, ensuring end of project snagging issues are resolved in a timely manner.
In this case, the design team were able to alter the layout around the existing windows and fixed plumbing and minor structural elements, to create three spacious double bedrooms, each with built-in storage and two good sized bathrooms, a spacious kitchen and reception area with interconnecting doors provided a stylish open-plan feel. LCP recognise that all these new design elements maximise a flat’s appeal.
The project was then furnished using LCP’s own handpicked range. The flat was finally “dressed” with decorative items, using textiles, house-plants, artwork and home accessories to create an immediate “sense of home” to any prospective tenant.
Refurbishment Cost: £153,000 Furnishing Cost: £35,500
- Agreed purchase price:
The end result
As anticipated, the flat appealed to blue-chip international tenants. LCP were able to opt for a company let, which traditionally provides security of tenure for a number of years. The popularity of the flat meant, following the refurbishment work, the property was let within one week of coming to market.
- Gross rental yield:
- Valuation post-refurbishment: