Cumbria

Axxco sourced and supported an investor to purchase a property in Cumbria for £70,000 from the open market, with the purchase price and rental terms pre-agreed with a housing association. Our in-house specialist build team transformed the property into a five-bedroom HMO over 4-6 weeks with a £67,800 renovation, bringing the total investment to £137,800. The property now yields £17,680 annually, delivering a 12.83% net return. Secured with a 7-year lease to an FTSE 250 housing provider, with options to extend, it provides critical accommodation for vulnerable tenants, including those with accessibility requirements.

Renovation Details

Our in-house specialist build team elevated the property to exceed housing association and HMO standards, focusing on safety, functionality, and resident comfort.

Key improvements included:  

• ‍Safety Measures: A new consumer unit with interlinked smoke and CO2 detectors was installed, alongside fire safety signage and fireboards in the boiler cupboard, loft hatch, and meter areas. Gas systems were upgraded with a new boiler, radiators, and certified pipework. Fire doors with frames, smoke seals, auto-closers, and thumb-turn locks were fitted throughout, complemented by emergency lighting and window restrictors for full compliance.  ‍
• Structural Changes: Internal walls were reconfigured to create five bedrooms, each at least 6.52m². Walls were stripped, insulated, boarded, and skimmed, and ceilings were overboarded and skimmed. A new toilet room was added with plumbing and a wash basin, and an existing space was repurposed to accommodate the fifth bedroom.  ‍
• Comfort Upgrades: A modern kitchen was fitted with new cabinets, worktops, tiled splashbacks, and appliances (cooker, washing machine, fridge-freezer, microwave). The bathroom received a new suite with a mixer shower and extractor fan. Bedrooms, hallways, and living areas were equipped with carpets, lino in wet areas, and furnishings, including five wardrobes, chests, beds with PVC mattresses, a dining table with chairs, and sofas.  ‍
• Accessibility Features: Raised handrails (900mm), elevated banisters (1100mm), and privacy film on glass ensured accessibility for diverse residents.  ‍
• External Improvements: The roof was checked for stability, and gutters were repaired or replaced. The rear yard was landscaped, with new paving, a secure gate, and repainted external walls. Boundary fences were strengthened for durability.  ‍
• HMO Standards: The property complies with full HMO licensing, featuring UPVC double-glazed windows, fire doors, and a dual-ringer doorbell, ensuring versatility for future use.  ‍
• Finishing Touches: Vertical blinds, architraves, skirting, a fire blanket, and damp proofing were installed. New loft insulation, a lockable loft hatch, and a professional clean prepared the property for handover.

Overview

Completed in 4-6 weeks. The property benefits from a 7-year lease with an FTSE 250 housing provider, ensuring monthly rent payments via BACS, no void periods, and zero management fees. Maintenance, inspections, council tax, and utilities are covered, with a novation clause safeguarding the investor against provider insolvency. All work is guaranteed for 2 years and meets UK Building Regulations, with certificates issued for electrical, gas, fire alarm, emergency lighting, and building compliance.