🏡 Reno Opportunity: £380k NW London 3-bed Flat

16%+ ROI potential

Author

Reno Hunter
January 13, 2025

Hello and welcome to today’s edition of The Reno Hunter newsletter!

Good and bad news in this issue… after an unprecedented response to the newsletter last week and a quite frankly an overly-flattering influx of investor requests, today’s property is actually one I’m packaging and negotiating for on behalf of an investor.

Whilst the intention of this newsletter is to continue to provide as much value as possible, I’ve been asked to maintain some details of the property which I’ll be able to release at a later date - and I’ll look to do a post-deal analysis on this too if I can, which will hopefully be a different type of interesting.

I hope you still find this breakdown interesting and valuable. As always please get in touch to ask any questions on methodology or if you’re looking to collaborate - I’m all ears!

Thank you again for subscribing and being an early believer!

Oli

And so, where were we? Ahem…

Today, we’re in NW London in where we have a flat that is ready for a refurb and has the option to extend into the loft.

With a target purchase of <£380k pre-renovation, this property could bring in 16%+ ROI on a cash purchase.

The Property 🏡

  • Address: NW London

  • Listed Price: £380k

  • Comparable Sale: £475k same street 3-bed in 2022

💡 Why We Like It 💡 

This 3-bedroom flat has plenty of potential to add value and maximise its appeal. Here’s why it caught our eye:

  1. Opportunity to Extend: The property offers the option to convert the loft (subject to obtaining the necessary permissions), turning it into a spacious 4-bedroom home. This additional bedroom could significantly boost the property's value and rental appeal, particularly in this part of London.

  2. Strong Comparables:

    • A smaller leasehold flat on the same road sold for £475,000 in 2022, demonstrating strong demand in the area.

    • A comparable 3-bedroom house on the same road is currently listed for £560,000, showcasing the potential uplift after modernisation and extension.

  3. Reasonable Entry Price: With an asking price of £380,000, the property sits well below the ceiling price for the street. This provides a strong foundation for renovation and value-adding works.

  4. Prime Location: Located in NW Ldn, the property benefits from excellent transport links, local amenities, and strong rental demand, making it an ideal investment opportunity.

  5. Scope for Modernisation: The works required (redecoration, new carpets, new kitchen & bathroom) provide the perfect opportunity to tailor the property to meet market demands while adding significant value.

  6. Private Garden: Spaces like this are at a premium in London particularly for 1st floor+ flats. This garden also has plenty of room for improvement and value-add.

📊 Running The Numbers 📊

Here’s how the numbers stack up:

💰 Cost to Buy 💰

  • Purchase Price: £380,000

  • Stamp Duty (SDLT, assuming second home): £25,500

  • Legal Fees: £2,000

  • Miscellaneous Costs (e.g., surveys): £1,500

Total Cost to Buy: £408,000

🔨 Cost to Renovate and Hold 🔨

  • Renovation Budget: £50,000–£70,000 (including loft conversion)

  • Council Tax & Utilities during renovation: £2,000

Total Renovation and Holding Costs: £52,000–£72,000

💷 Cost to Sell and Revenue from Sale 💷

  • Agent Fees (1.5% of sale price): £8,250

  • Legal Selling Fees: £2,000

Total Selling Costs: £10,250

  • Projected Sale Price (conservative, post-renovation): £550,000

📈 Summary 📈

  • Total Costs (Buy, Refurb, Hold, and Sell): £456,150–£476,150

  • Profit: £83,850–£103,850 (Projected Sale Price - Total Costs)

  • ROI: 16%–20%

🛠️ Renovation Plan ⚒️ 

To bring this property to its full potential, here’s what’s needed…

  • Works Needed and Renovation Plan:

    1. ✨ Redecoration:

      • Paint and refresh walls/ceilings: £2,500–£4,000

      • Lighting fixtures upgrade: £400–£800

    2. 🛏️ New Carpets:

      • Replace flooring throughout: £2,500–£3,500

    3. 🍽️ Kitchen Renovation:

      • Mid-range kitchen install (cabinets, appliances): £9,000–£13,000

    4. 🏡 Bathroom Renovation:

      • New suite and tiling: £4,500–£6,500

    5. 🏠 Loft Conversion:

      • Structural works, insulation, finishing: £23,000–£30,000

      • Other contractor fees (building regs, architect, planning etc): £6,500–£8,500

    6. 🌳 Garden Upgrade:

      • Landscaping and planting: £1,500–£3,000

      • Decking or patio area: £2,500–£4,000

    Total Renovation Costs:

    • Low Range: £52,000

    • High Range: £72,000

🔮 How it could look 🔮 

After 🪴 

💡 Final Thoughts 💡

This property in NW London offers an exciting opportunity for investors or homeowners looking to add significant value. The manageable entry price, combined with the potential for a loft conversion and modernisation, positions this property as a high-potential project in a sought-after London area. The strong comparables and realistic renovation budget provide a clear path to achieving an attractive return on investment.

The ability to transform the property into a 4-bedroom home with a beautifully landscaped garden further enhances its appeal. For those willing to put in the work, this property represents a chance to create something truly special while capitalising on the growing demand in NW London.

With the right plan and execution, this renovation could result in a stunning and profitable outcome, making it a project worth serious consideration.

As always, do your own due-dil!

Until next time…

Happy hunting,
The Reno Hunter Team

👉 Looking for renovation inspiration? Check out before-and-after renovation ideas on Instagram and Facebook

Disclaimer:

All projections are based on provided data and are subject to change. Always conduct your due diligence before proceeding with any property investment.