Every property brings different opportunities and challenges. We would like to share the insight of the development with you.
Project
This is one of our South Wales Projects. The property was purchased back in 2018. It was a 3 bedroom terraced house, in a quite distressed condition. It was an outdated property, with visible signs of water damage. We have secured the house at a good price, allowing contingency for the refurbishment.
Strategy
The main purpose was to bring the property to a habitable state and fix all the problems with mould and water damage. The property was financed with a bridging loan. The refurbishment took around 5 months, allowing us to re-mortgage the property straight away. It is now fully rented to long term Tenants. It is a single BTL, providing a steady cashflow.
Scope of refurbishment
The property was fully refurbished, including new kitchen, bathroom, floors and walls. We had to do a bit of structural work as there was a lot of hidden water damage that we discovered during the first phase of refurbishment. This included dry rot in the floor joists and door frames, which we had to replace or treat fully. Despite of many unforeseen issues and additional works, we have managed to keep the refurbishment cost within estimated brackets.
Challenges
This property was not a straight forward one! We have had a few issues during the refurbishment:
1. The water damage was way more excessive than what we have previously assumed
2. We had a RICS accredited surveyor to have a look at the house, and he has not pointed out any of the damp issues
3. Dry rot found in the property, which had to be treated
4. Structural work had to be done, to rectify the water damage
5. Delays - we have contracted a builder, that we have never worked with before and we had a lot of reliability issues, which also significantly extended the refurbishment time.
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