Manchester LTD Flipping Forced Appreciation Strategy: From £49.6k to £94.3k in Approximately 6 Months
Manchester · Forced appreciation / SPV flip
Our client purchased a property in Manchester through an SPV limited company for approximately £155,000.
Initial investment
- Purchase price: Approx. £155,000
- Deposit: Approx. £38,750
- Stamp duty: Approx. £8,350
- Legal & professional fees: Approx. £2,500
- Refurbishment finance: Approx. £30,000
- Initial personal capital: Approx. £49,600
Our client purchased a property in Manchester through an SPV limited company for approximately £155,000.
The property required a full refurbishment programme and was specifically selected for its value-add potential.
The property subsequently underwent a comprehensive refurbishment programme funded through refurbishment finance and was presented to the market in a high-end style with professional staging and carefully planned marketing.
The result
- Agency valuation: approximately £240,000
- Final sale price: approximately £245,000
- Multiple offers received
- Sold within approximately two weeks
Sale & equity position
- Agency valuation: Approx. £240,000
- Final sale price: Approx. £245,000
- Cash remaining after sale (mortgage, refurbishment finance, agency, legal & selling costs repaid): Approx. £94,250
- Total equity/profit position: Approx. £44,650
- Return on initial capital: Approx. 90%
The entire project was completed within approximately six months. What makes this example particularly interesting is that the client was not a professional developer and had only limited experience undertaking property refurbishment or value-add projects. In fact, the project was operated almost entirely remotely, with the client not visiting the property during the refurbishment process. Instead, the project was delivered using trusted local contractors, project managers and industry professionals. Through careful property selection, targeted improvements and effective presentation to the market, substantial value was created within a relatively short period of time.
Results
- Initial personal capital: Approx. £49,600
- Cash remaining after sale: Approx. £94,250
- Total equity/profit position: Approx. £44,650
- Return on initial capital: Approx. 90%
- Project timeline: Approximately 6 months
- In simple terms: A Manchester value-add project acquired through an SPV limited company, fully refurbished over approximately six months and sold shortly afterwards for a significant profit, demonstrating attractive returns even with limited industry experience while running the project remotely and in a largely passive manner
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.