Three-bed character semi,
Somerset
The deal in one paragraph
A tucked-away three-bed character semi on the edge of a Somerset county town — guide £140,000, freshly reduced, no chain, sold by modern method of auction (4.5% buyer’s fee, and yes, our numbers include it). Top of our current book: 71% ROI likely at the guide even after the fee and an updating budget, with the poor case still positive. Auction discipline applies: every check before the bid, hard ceiling, walk past it.
The angle
Best number on the book
71% ROI at the guide on the full model — fee and works loaded. First on our screen and still first after the honest costs.
Character earns rates
beams, fireplaces, south garden, driveway — refreshed character stock takes the top of the 3-bed nightly range.
Auction clock suits cash
56-day completion and a non-refundable fee scare retail buyers; a prepared cash buyer walks through it.
Underwritten as a plain BTL first
Every deal must stand up as a standard buy-to-let on market rent before any serviced-accommodation income is counted.
| At guide £140,000 | At our number £140,000 | |
|---|---|---|
| Refinance loan (75% of price + works) | £112,500 | £112,500 |
| Interest-only at 5.5% | £516 pcm | £516 pcm |
| Estimated market rent (verify locally) | £950–1,050 /mo | £950–1,050 /mo |
| Rent needed at lender stress (145% @ 5.5%) | £748 pcm | £748 pcm |
Income scenarios — good, likely, poor
Nightly-rate model for a 3-bed, shown at our £140,000 number. Net figures are after utilities, council tax and interest at 5.5% on the refinance loan. Cleaning, management and insurance sit outside this screening basis. All figures are projections, not guarantees.
| Scenario | Basis | Gross / year | Net / year |
|---|---|---|---|
| Good | £175 night · 90% occupancy | £57,488 | £46,510 |
| Likely | £175 night · 80% occupancy | £51,100 | £40,122 |
| Poor | £125 night · 50% occupancy | £22,812 | £11,835 |
Return on money left in
ROI is net annual income against cash still in the deal after the 75% refinance. Money left in = cash out (price + stamp duty + legals £1,750 + sourcing fee £3,000 + works £10,000 + auction reservation fee) less the refinance.
Projected return on money left in at £140,000 — with the poor case still returning 21% and payback of the cash left in at roughly 17 months on the likely case. All costs loaded: no quiet exclusions.
Offer strategy & day-one cash
The position
Pre-bid, not post-bid: survey walkthrough, rate check and refinance confirmation all before reserving — the 4.5% fee is non-refundable from the moment you win.
Day one, at our number
≈ £168,999 total day-one cash. Refinance releases £112,500 back, leaving £56,499 in the deal.
Bid to a hard ceiling of £155,000. At the guide it is the best deal on the book; at £155,000 it is still a 64% ROI deal. Above that, stop — auctions punish the last bid.
What we verify before exchange
- Reserve and competition. speak to the auctioneer and agent about the reserve range and interest level before committing the fee.
- Works scope. £10,000 covers updating, not surprises — heating is new (2023 boiler) but check the roof, damp and electrics on the walkthrough.
- Nightly rates. £175 at 80% is the standard 3-bed basis; it sits on the town fringe — verify against live live local comparables.
- Market rent. confirm £950–1,050 with local agents; stress passes with headroom.
- EPC and title. EPC not published; obtain. Confirm nothing unusual on the auction legal pack — read it before bidding, not after.
Fit & exits
Operate
Refresh and run as 3-bed serviced accommodation with placement demand on top. Character cottage presentation earns the top of the nightly range.
Single let / resell
Falls back to a plain BTL at £950–1,050 with stress headroom, or resells refreshed to the owner-occupier market — a character semi with parking and a south garden is broad-appeal stock.
As with every deal we sell, aftercare is built in: a company let from the buyer at a guaranteed rent, or ongoing placement of bookings. You're buying the deal with the operating route attached.
Photographs — under wraps
The photograph set — and the address — are held back while the deal is live. They identify the property, and protecting a live deal is part of what you're paying for. Accept the deal and the full set is released the same day.
Released on acceptance
Released on acceptance
Released on acceptance
Proof of funds, our sourcing terms, and the fee agreed â then you get the street, the door, and the full photograph set the same day. Straight talk: if the numbers above don’t work for you, the address won’t change that.
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