Investment Analysis: Trendlewood Park

A high-yield HMO conversion opportunity in Stapleton, Bristol. Guide Price: £300,000. This 5-bed townhouse is perfectly positioned near UWE Glenside Campus, offering prime student rental potential.

Rental Yield

Projected income is based on a 5-bed HMO model at an average room rate of £130/week. Gross yield of 11.26% is exceptionally strong for the Bristol market. Your ROCE is calculated at 27.5%, reflecting the leverage efficiency of the £40,000 down payment used against the total capital deployed.

Cash Flow

Monthly expenses account for mortgage (at 1% interest), 12% management fees, and 10% allowance for maintenance/voids. The cash flow is strongly positive, providing a significant buffer for any HMO-related regulatory costs.

Capital Growth Potential

Stapleton and the BS16 area benefit from proximity to major employment hubs and the UWE campus. With demand for student housing in Bristol outstripping supply, capital growth is expected to remain consistent with broader city trends. Growth Score: 8/10.

Mortgage Terms

• Loan to Value (LTV): 86.6% (Based on £300k price and £40k deposit)
• Interest Rate: 1.0% (Note: This is an aggressive rate; ensure eligibility for specific BTL products).
• Stress Test: The rent easily covers the required 125-145% coverage, even at higher stress rates.

Upfront and Ongoing Costs

Tenant Demand

High demand driven by UWE Glenside Campus. Target demographic is students or young professionals. Void risk is minimal if managed as a professional HMO.

Location Fundamentals

Excellent connectivity via M32/M4/M5. Location Score: 8/10. Proximity to Stoke Park Estate makes it desirable for non-student tenants too.

Exit Strategy

• Primary: Hold as high-yielding HMO.
• Secondary: Sell as a fully-licensed, tenanted investment property to other investors.
• Limitations: Ensure compliance with Article 4 and local HMO licensing requirements in Bristol.

Property Condition and Potential

Currently a large townhouse. The refurb strategy must focus on HMO compliance: fire doors, hard-wired alarms, and modernized kitchen/bathroom facilities. Add-Bedroom Potential: N/A (Already 5-bed).

Legal and Regulatory Compliance

EPC C is already compliant. Must apply for HMO license upon acquisition. Ensure Tenure is confirmed as Freehold in legal pack.

Risk Assessment

Risk is largely regulatory (HMO licensing/planning) and market-specific (interest rates on the loan). Ensure the 1% interest rate assumption is sustainable or modeled against higher rates.

Price Negotiation

• Dated Interior: £5,000 - £10,000 reduction potential.
• Auction Timeline: Use the 8-week completion to negotiate a lower price if the seller is motivated for a quick sale.

Refurb Shopping List

Labour Tasks

Refurb Timeline

Total Duration: 8 Weeks

Strip Out & Fire Safety || 2 weeks

Kitchen & Bathroom || 3 weeks

Decor & Flooring || 2 weeks

Snagging & Safety Certs || 1 week

Final Investment Recommendation