The Deal Story

Had a call recently about a BRRR deal in the Northeast.

Purchase: £65,000. Refurb budget: £18,000. Target refinance value: £110,000. The numbers looked fine.

We went through the deal on the intake form and three things came up immediately.

The refurb estimate was from a verbal conversation with one builder, not a written scope. No allowance for structural work, which in a terrace of that age in that area is a material omission. The real number was closer to £30,000–35,000.

The target refinance value of £110,000 was based on asking prices from estate agents, not completed sales from Land Registry. The most recent comparable within 0.25 miles sold at £93,500 six weeks prior. The refinance exit was £16,500 off.

The EPC was E rated. At E, the property is not legally lettable after 2025 without an improvement plan. The cost of getting it to D had not been factored in.

None of these were deal killers. All of them changed the numbers.

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