5 HMO properties in 3 locations, 1 valuations expert
When professional investors were looking to buy five large HMO (house in multiple occupation) properties, located in different towns across the midlands, in order to lease them to a housing charity as homeless accommodation for the period of 20 years their banking partner knew they needed a valuation expert who could bring their expertise to bear quickly and efficiently.
CHALLENGES FACED
Every property is unique and the HMO properties, which each have between 10 and 17 rooms, were no exception. The properties consisted of a mixture of both freehold and leasehold properties and were in different states of repair. These factors contributed to a number of challenges coming to light during the investigations.
Some – such as poor renovation works – were easily identified but there were also more serious concerns that needed to be taken into account. Structural issues in one of the properties, as well as missing planning approvals for another, necessitated in-depth investigations and relevant recommendations to be made so that both the banking client and the investors could make informed decisions.
SOLUTION
With their extensive experience in multi-occupancy residences, AWH were able to assess and provide an “as is” valuation of each of the five properties. Drawing on knowledge accumulated over their careers, the Valuation team were able to take the market conditions and locations of each property into account, ensuring that the final valuation report included the necessary figures for the investor to determine what their return could be on a 20-year lease.
At the time of writing, the purchase of four of the five properties is due to finalise. Both the bank and the investors are delighted with the commitment and expertise that AWH demonstrated, and the timeliness in which they were able to complete the valuation work.
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We have experts who specialise in both residential as well as commercial valuations. If you are investing in property and want expert valuation advice, call us on 0800 071 5517 or email admin@awh.co.uk.