Check out one of our past projects – 7 Lune Street in Preston, Lancashire
7 Lune Street in Preston, Lancashire – a success story
Situated in the popular city of Preston, this newly renovated property on Lune Street boasted a prime central location, ensuring strong local demand from tenants. The block of six self-contained apartments – made up of five one-beds and one two-bed – was fully tenanted at the time of sale, and our client was particularly impressed by the high-end finish and the recent “back to brick” refurbishment that gave each apartment its unique character.
It was a freehold purchase, giving our client full control of the building, while the fact that it was a fully managed, hands-off investment with all the furniture, white goods and built-in appliances included made it a particularly enticing prospect as a ready-made source of passive income for the buyer. For prospective tenants, the sleek new kitchens, Italian inspired bathrooms and professionally designed and personalised interiors ensured a high calibre of interest.
The expected rental income for the six apartments was around £65,000 per annum in total, equating to an attractive 7% yield for the buyer, which is competitive for the area of Preston. After mortgage and management costs, the properties offered a net monthly positive cash flow of around £2,551, and the investment is currently performing as expected for the buyer.
Preston is a key property investment location at the moment, having been subject to a huge amount of regeneration over recent years, particularly around the train station within the city centre. With low average house prices and high tenant demand, it is a particularly popular destination for property investors in the buy-to-let space.