Page 7
The Deal / Investment Case
The numbers that make the decision: total investment, GDV scenarios, and cash versus bridging BRRR positions side by side.
Total investment
- Purchase price
- £195,000
- Core renovation
- £35,000
- Total investment
- £230,000
Realistic sale value (GDV)
| Scenario | GDV | Basis |
|---|---|---|
| Conservative | £300,000 | In line with solid local 4-bed sold comps (2 Daisy Road, Harold Road) |
| Realistic | £325,000–£335,000 | Genuine 5-bed / 3-bath conversion + rear extension + reservoir position |
| Optimistic | £360,000–£375,000 | Matching top-tier street comps (Leslie Road, Reservoir Retreat) — needs premium finish |
Get a local agent valuation or comparable “sold STC” evidence before finalising a published GDV figure.
BRRR refinance — cash purchase vs bridging finance
Both columns assume a 75% LTV refinance once the works are complete. Pick the route that matches how you would fund the purchase.
Cash purchase
Total spend £230,000 (£195,000 purchase + £35,000 renovation).
| GDV scenario | 75% LTV refinance | vs £230,000 | Result |
|---|---|---|---|
| Conservative (£300k) | £225,000 | -£5,000 | £5,000 left in the deal |
| Realistic (£325k) | £243,750 | +£13,750 | All capital back + £13,750 released |
| Optimistic (£360k) | £270,000 | +£40,000 | All capital back + £40,000 cash released |
Bridging finance purchase
75% LTV bridging loan on purchase (£146,250), ~0.85%/month rolled interest over a 6-month term (~£7,459) and a 2% arrangement fee (~£2,925). Buyer’s own cash in: 25% deposit (£48,750) + £35,000 renovation + arrangement fee ≈ £86,675.
| GDV scenario | 75% LTV refinance | Less bridge (£153,709) | Released | vs £86,675 cash in |
|---|---|---|---|---|
| Conservative (£300k) | £225,000 | £153,709 | £71,291 | £15,384 left in |
| Realistic (£325k) | £243,750 | £153,709 | £90,041 | £3,366 pulled out |
| Optimistic (£360k) | £270,000 | £153,709 | £116,291 | £29,616 pulled out |
Rental yield on total investment
Whole-house single let
£22,200 (£1,850 pcm)
Annual income · ~10% gross yield
Room-by-room professional let
£30,000 (£2,500 pcm)
Annual income · ~13% gross yield
Deal scorecard
Overall deal score
8.4/10
Average of the five categories scored below.
Location
9/103–4 minute walk to Edgbaston Reservoir, strong transport and amenity access.
Deal Margin
8/10£300k–£375k GDV against £230,000 total investment — near-full capital recycling in the realistic case.
Value-Add Potential
9/10Scope to take the house from 4 bed / 2 bath to 5 bed / 3 bath.
Rental Yield Potential
8/10£22,200 single let (£1,850 pcm) or £30,000 room-by-room (£2,500 pcm) — 10–13% gross on total investment.
Liquidity / Speed of Exit
8/108–10 week renovation window and consistent demand for finished stock in B16.
Why this deal works
- Purchase price sits well below area comps even before renovation
- Stripped back to brick and cleared of waste — first fix can start from day one
- Rooms sized to meet HMO minimum room size — no licensing shortfall risk
- Genuinely walkable to Edgbaston Reservoir — a proven local rental and resale draw
- Realistic scenario shows near-full capital recycling on refinance, with two viable rental strategies to choose from
Ready to move on this?
Feel free to get in touch to arrange a viewing or ask any questions.