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Deal WizardHMO · Property Analysis
4 bedroom detached house for sale in Abbotsleigh Road, South Woodham Ferrers, Chelmsford, Essex, CM3
Address: Abbotsleigh Road, South Woodham Ferrers, Chelmsford, Essex, CM3Price: £400,0004 Bedroom(s)3 Bathroom(s)Analysis Date: Apr 26, 2026
ROCE: 33.5 %Tenure Type: FREEHOLDProperty Type: DetachedCouncil Tax Band: DSize: 0 sq ft / 0 m²Risk: MediumProject Time: 8 weeks

HMO Investment Analysis

Analysis for Abbotsleigh Road, South Woodham Ferrers. Projecting a high-spec 5-bed HMO conversion.

Executive Summary

This detached 4-bedroom property offers significant potential for a 5-bedroom high-yield HMO conversion. By repurposing the dining room into a fifth bedroom, the property can be transformed into a compliant, high-demand professional house share. With a strong EPC rating (Current 82B, Potential 87B), minimal energy efficiency works are required, allowing capital to be directed towards high-impact aesthetic and safety upgrades.

Acquisition Overview

Purchase Price
£412,500
Buyer Type
FTB
Down Payment
£40,000
Bank Fee
£11,175
Interest Rate
1.0%

Projected Rental Income (Post-Refurb)

Monthly Revenue
£3,650
Annual Revenue
£43,800
Occupancy Rate
95%

Projected Cashflow & Returns

ROCE
33.5%
Gross Yield
10.6%
Net Yield
6.0%
Monthly Cashflow
£2,063

Licensing & Compliance

Fire safety is paramount: Install FD30 doors throughout, interlinked heat/smoke detection system, and emergency lighting in hallways.

Property & Layout Analysis

Bedroom 1 (Master)
Pass
Bedroom 2
Pass
Bedroom 3
Pass
Bedroom 4
Pass
Bedroom 5 (Dining)
Pass

Layout Options:

Option 1
5 Bed HMO
Recommended

Max Compliant Occupant Count: 5 adults.

Refurbishment Plan

Standard: Medium-High. Focus on professional "co-living" aesthetic to command premium rents.

Refurb Breakdown:

Fire Safety (Alarms, Doors)£5,500
Kitchen Upgrade & White Goods£8,000
Partitioning/Stud Wall (Dining to Bed)£2,500
Bathroom Refurb (x3)£12,000
Flooring & Carpets£4,000
Furniture & Staging£6,000
Decorating & Painting£4,000
Contingency (10%)£4,200
Total Estimated Cost£46,200

Timeline:

Weeks: 8 || Months: 2

Negotiation Points

Condition & Refurbishment
Property requires significant internal reconfiguration. Use this to negotiate £10k off.
Prob: 75
Time on Market / Motivation
Property has been reduced since April. Seller is likely motivated.
Prob: 80

Investment Case Summary

Short Recommendation

Strong investment. High-yield potential in an area with good commuting links to London. The 5-bed conversion is straightforward and compliant.

Detailed Recommendation

This is a solid buy-to-HMO project. The property is currently a 4-bed detached, and by converting the dining area, we create a 5-bed HMO that fits well with the local rental market. Financials are strong, with projected returns comfortably exceeding the hurdle rates for this sector. The biggest risk is local council licensing requirements, specifically Article 4, which is common in commuter belt areas. Prior to exchange, confirm the status of C4 planning usage. Financially, the deal is well-leveraged, and the refurbishment budget allows for a high-end finish that will attract working professionals, reducing vacancy risks. The potential to pull out capital on refinance is excellent if the ARV is achieved.