Investor summary · Farnworth · Draft — unverified

Park Street: a six-bedroom HMO, reportedly let

14.8% gross yield at the modelled £270,000 price.

Initial investment

£95,545

All in, sourcing fee included

Annual rent

£40,000

6 rooms, agent-stated

Net a month

£632

After costs, before tax

Cash-on-cash

7.9%

£7,583 a year, before tax

Draft — unverified. Built on assumptions. The rent is the agent's figure and the price is our target, not agreed. Gross yield is 13.3% at the asking price (page 2).

The opportunity

A detached 6-bed HMO, every room en-suite, refurbished in 2019 per the agent, reportedly let. Offers over £300,000; modelled at £270,000. Price and rent not yet agreed or verified. No works. Hold for income on an assumed 75% limited company HMO mortgage; no refinance assumed.

The income

The rent works out at £128 a room a week, below the £147 local average for a double en-suite room. After interest and running costs, including bills, £632 a month is left before tax. Tenancy schedule requested; not yet seen.

The capital

Large houses nearby point to a value of about £330,000, within £288,000 to £372,000. Bought at £270,000, that suggests about £32,000 of headroom on day one, not a gain; at the bottom of the range, none.

The location

About 2 miles south-east of Bolton town centre, near Farnworth station, with trains to Bolton and Manchester, and close to the M61. Our view: steady demand from working sharers.

Every month

Rent, 6 rooms£3,333

Interest, 75% at 5.5%−£928

Running costs, 28% + bills−£1,773

Net, before tax£632

What you put in

25% deposit on £270,000£67,500

Stamp duty£17,000

Sourcing fee, 2%£5,400

Survey, legal, insurance, lender£5,645

Total cash in£95,545

Park Street, Farnworth BL4. 6-bed detached · C4 HMO · 2,165 sq ft · council tax band C · tenure to confirm.

Draft — unverified. Figures are modelled and before tax. Prepared by Disa Property Investments, Sourced franchise partner. Built on stated assumptions: the rent is the selling agent's figure and the £270,000 price is a target, not agreed. The £330,000 value is an estimate from sold prices, not a valuation. Not a recommendation; not investment, tax or legal advice. Capital is at risk.

Park Street, Farnworth · Draft — unverified · v2, 16 Oct 2026

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2 · Assumptions and value

The assumptions, stated plainly.

The listing gives the rent, the use and the size. Everything else is modelled or outstanding until the agent's documents arrive.

The model assumptions

Input

Used

Basis

Status

Purchase price

£270,000

Offers over £300,000 (Bradley Hall, listed 5 Jun 2026). Modelled 10% below; no offer made.

Modelled

Rent

£40,000 a year

Stated in the listing, “currently let”: £128 a room a week against a £147 local en-suite average.

Agent-stated

Occupancy

6 of 6 let

Occupancy and arrears not yet confirmed. 8% voids allowed.

Agent-stated

Running costs

28% + £840 pcm

12% management, 8% maintenance, 8% voids, plus £840 bills. Council tax band C.

Modelled

Mortgage

75%, 5.5% interest only

Limited company HMO product, valued at the purchase price. Not yet broker-quoted.

Modelled

Purchase costs

£28,045

Stamp duty £17,000, sourcing fee £5,400, survey, legal, insurance and lender £5,645.

Modelled

House value

£330,000

2 nearby 5-bed sales, adjusted for size: £288,000 to £372,000. Not a valuation.

Modelled

Use and licence

C4 HMO

Stated in the listing, in an Article 4 area. Licence not yet seen.

Agent-stated

Tenure and VAT

None assumed

Tenure not stated. Price quoted exclusive of any VAT that may be payable.

Outstanding

Where the value sits

The lender lends 75% of the price or its valuer's figure, whichever is lower.

£270,000 target price

£330,000 our estimate

£227,000 lowest comparable

£298,045 break-even

≈ £32,000 estimated headroom

Range £288k–£372k

If valued at £227,000

Lender lends£170,250

Your cash in£127,795

Net a month£780

Valued at £270,000 or more

Lender lends£202,500

Your cash in£95,545

Net a month£632

Illustration: refinance at £330,000

Lender lends£247,500

Cash back£45,000

Left in · net a month£50,545 · £426

Draft — unverified. Figures are modelled and before tax. Prepared by Disa Property Investments, Sourced franchise partner. Built on stated assumptions: the rent is the selling agent's figure and the £270,000 price is a target, not agreed. The £227,000, £330,000 and range figures are estimates from sold prices, not valuations. Not a recommendation; not investment, tax or legal advice. Capital is at risk.

Park Street, Farnworth · Draft — unverified · v2, 16 Oct 2026

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3 · Financial scenarios and risks

What could change the outcome.

Modelled figures, before tax, not a lender quote. The larger risks are the value, the licence and the unseen tenancies.

A top-floor room with kitchenette at Park Street

Net a month before tax, under stress

As modelled

£632

Rate 6.5%

£463

Rent −10%

£392

Rate 7.5%

£294

Rent −10% is £3,000 a month. Modelled; not a lender quote.

Room empty 6 months

−£2,933

beyond the 8% voids allowed. The year still makes £4,649. To check for double counting.

Important things you need to know

01

The value — the biggest risk

The £330,000 rests on two sales. At £297,000, 10% lower, the estimated headroom is gone. Valued at £227,000, cash in rises from £95,545 to £127,795. A broker must confirm the lender's approach before any offer.

02Licence and planning

C4 use is stated in the listing but not yet evidenced, in an Article 4 area. A licence doesn't transfer: the buyer reapplies. Kitchenette rooms may count as bedsits, with stricter fire rules.

03The rents

The £40,000 is the agent's figure; the tenancy schedule is not yet seen. Each £10 a room a week less cuts about £187 a month.

04Voids and management

Voids hit one room at a time, but rooms turn over more often. Management assumed at 12%, voids at 8%.

05Tenure, VAT and tax

Tenure isn't stated and the price excludes any VAT: both to confirm. In a limited company, interest is a business cost, so Section 24 doesn't apply.

Draft — unverified. Figures are modelled and before tax. Prepared by Disa Property Investments, Sourced franchise partner. Built on stated assumptions: the rent is the selling agent's figure and the £270,000 price is a target, not agreed. The £330,000 value is an estimate from sold prices, not a valuation. Not a recommendation; not investment, tax or legal advice. Capital is at risk.

Park Street, Farnworth · Draft — unverified · v2, 16 Oct 2026

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4 · Evidence and next steps

Turning assumptions into facts.

What we have: the agent's listing and six photos, the stated rent, nearby sold prices and our model. What is outstanding is below; this pack will be reissued on the answers.

What is still outstanding · ask Bradley Hall

Rents and tenancies

Rent for each room, and what bills it includes

Tenancy schedule: dates, type, arrears, empty rooms

Rent statements for the last 12 months

Deposit protection certificates

Settles the £40,000 rent and what it covers.

Licence and planning

Bolton HMO licence: holder, expiry, occupants

Evidence of C4 use before the Article 4 direction

Fire risk assessment for the kitchenette rooms

Settles lawful HMO use, and whether a lender will lend.

Compliance and the building

Gas safety, electrical (EICR), EPC, fire alarm

Floor plan with room sizes; furnished or not

Actual utility, broadband and cleaning costs

Known issues with the roof, damp or boiler

Settles the £840 bills and any compliance spend.

The sale

Tenure, and whether any VAT is payable

Who is selling, and why

Offers so far since June

Who manages it now, and whether they would stay

Settles room to negotiate on £300,000.

What happens next

1

Rerun on the actual rents and bills; reissue this pack.

2

Check the licence on Bolton Council's HMO register.

3

Broker: limited company HMO rate, and how the lender values it.

4

Agree an offer with you. We would not go above £285,000; the model uses £270,000.

5

On acceptance: £2,000 holding deposit, then survey, searches and valuation.

How to move forward · talk to

Chrissie Auton

Director & Franchisee

Trusted Property Partner of Sourced

0161 399 8877

[email protected]

Book a call · Current opportunities

Draft — unverified. Figures are modelled and before tax. Prepared by Disa Property Investments, Sourced franchise partner. Built on stated assumptions: the rent is the selling agent's figure and the £270,000 price is a target, not agreed. The £330,000 value is an estimate from sold prices, not a valuation. Not a recommendation; not investment, tax or legal advice. Capital is at risk.

Park Street, Farnworth · Draft — unverified · v2, 16 Oct 2026

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