London BRRR Strategy: Waltham Forest Refurbishment, Refinance & Equity Creation Project

Waltham Forest, London · Conversion & refinance

The property was originally 2 bed / 1 bath. With the right refurbishment strategy and conversion, it was transformed into 3 bed / 2 bath.

Initial investment

Purchase price: £360,000
Deposit (5%): £18,000
Stamp duty: £3,000
Legal & professional fees: £3,500
Refurbishment loan: £35,000
Total initial personal capital: £24,500

The property was originally 2 bed / 1 bath. With the right refurbishment strategy and conversion, it was transformed into 3 bed / 2 bath.

Investor kept the property for about 1 year as a residential home
Then proceeded with a residential remortgage

After refurbishment

New valuation after refurbishment: £450,000
Client remortgaged at 85% LTV

Remortgage & cash release

New mortgage (85% LTV): £382,500
Less original mortgage repayment: Approx. £336,000
Cash released after remortgage: Approx. £46,500

Results

Refurbishment loan repaid in full: £35,000
Cash left over after remortgage: £11,500
Equity remaining in the property: £67,500
Initial personal capital: £24,500
Potential total equity/profit (about 1 year): Approx. £54,000
Approximate return on initial capital: 290% to 295%
In simple terms: Investor almost tripled initial capital in about 1 year

Past performance is not a guide to future results. Figures reflect a specific client situation, market conditions at the time, and agreed fees. Your outcome will depend on your strategy, financing, and the property you buy.

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