Preset defaults
- Units: 1
- GIA per unit: 2,400 sqft
- NIA ratio: 80%
- Build cost: 1,750 £/sqm
- Professional fees: 9%
- Contingency: 10%
- s106 / CIL / BNG per unit: £0
- Finance rate: 10.25%
- Duration: 10 months
- Target PoC: 22%
What this preset is for
HMO converts a single C3 dwelling to sui generis or C4. GDV sized as NOI capitalised at 7 to 9 percent yield.
Yield bands
- Student HMO: 8 to 10 percent gross yield.
- Professional HMO (single sharers): 7 to 9 percent gross yield.
- Capitalise NOI at gross yield for a GDV proxy when comparables are thin.
Article 4 directions
- Article 4 removes PDR change from C3 to C4 in many city suburbs.
- Check the local plan before assuming PDR conversion; full planning may be required.
Open in workbench
Inputs
MAX LAND BID£210,341At 22% profit on cost, 1 units, 2400 sqft GIA each.
MARGINAL
GDV£816,000
Build cost£390,193
Prof fees£35,117
s106/CIL/BNG£0
Contingency£42,531
Finance interest£19,981
Target profit£107,321
Total costs (excl land)£487,822
Senior debt @ LTGDV£530,400
PoC16.9%
PoGDV14.4%
LTC76.0%
Sensitivity (PoC %)
Build -5%Build +5%Build +10%Build +15%Build +20%
GDV -15%18%20%21%22%18%
GDV -10%18%19%20%21%21%
GDV -5%17%18%19%20%20%
GDV 0%16%18%18%19%20%
GDV +5%16%17%18%18%19%
Cells show profit-on-cost percentage at each GDV stress / build-cost shock pair. Cells below your target PoC turn amber-warm; cells below 10 percent abort.