7-Year Property Investment Opportunity
2 Bed Terraced £950 net rent per month with an 11.2% stated yield.
Refurbished and furnished properties with a direct seven-year FRI lease and provider-covered running costs. Talk to an expert.
£950
Net per month
11.2%
Stated yield
7 Years
FRI lease
Core deal details
Guaranteed rent · Direct provider lease
| Property | 2 bed terraced |
| Purchase price | £100,000–£110,000 |
| Refurbishment & furniture | £22,000–£25,000 included |
| Net rent | £950 per month |
| Annual net income | £11,400 |
| Lease | 7-year FRI lease |
| Stated yield | 11.2% |
| Landlord running cost | Landlord insurance only |
£11,400
Net income per year
£79,800
Net rent across 7 years
£0
Management and set-up fees
0
Void periods during the lease
Test the deal for yourself
Change the supplied figures to see the live purchase cost, yield and rent across the seven-year lease.
Your figures
Rent received over 7 years
£79,800
Total cash purchase
£111,600
Purchase price plus listed acquisition costs.
Annual net rent
£11,400
Before tax and landlord insurance.
Yield on property price
11.18%
Annual rent divided by purchase price.
Yield on total cash
10.22%
Includes listed acquisition costs.
This calculator excludes mortgage costs, tax, landlord insurance, capital growth and future rent increases.
How the seven-year arrangement works
You own the property. The housing provider leases it directly, manages its day-to-day use and pays the agreed rent throughout the term.
01
Source
A suitable two-bedroom terraced property is sourced and assessed for the provider’s requirements.
02
Purchase
You purchase the property in your chosen ownership structure and retain the title deed.
03
Prepare
The £22k–£25k refurbishment and furniture package is completed to the required handover standard.
04
Lease
A direct seven-year FRI lease is put in place with the housing provider.
05
Receive
The provider pays £950 net rent each month and manages the day-to-day occupation and running costs.
Property ownership without the usual landlord workload
The provider becomes the occupational tenant under the lease and takes responsibility for the residents, routine operation and agreed property costs.
- Guaranteed rent paid monthly for the lease term
- No void periods or tenant-finding costs
- Council tax and utility bills paid by the provider
- Day-to-day maintenance and repairs handled by the provider
- No management, registration or set-up fees
- No rent collection, arrears chasing or debt collection
- Refurbishment and furniture package included in the purchase price
- Direct lease while you retain ownership of the property
What does FRI mean here?
FRI means Full Repairing and Insuring. The provider is responsible for the repair and maintenance obligations set out in the lease. For this opportunity, the landlord retains the cost of landlord insurance; the provider covers the other stated running costs.
What is the property used for?
The property is leased to a housing provider to deliver longer-term supported accommodation. The provider manages the residents and occupancy, while the investor receives rent under the commercial lease rather than collecting rent from individual residents.
Documents and checks to review
Before proceeding, your legal and financial advisers should verify the property, provider and full lease terms.
- Provider covenant, track record and financial position
- Full lease wording, break clauses, repair obligations and rent schedule
- Independent valuation, survey and refurbishment specification
- Planning, licensing and intended-use requirements
- Legal, tax and mortgage advice specific to your circumstances
Request the complete property deal pack
Review the full property, refurbishment, provider and lease information before deciding whether to proceed.
Figures are indicative and subject to contract, provider approval, survey and legal due diligence. “Guaranteed rent” remains dependent on the housing provider meeting its lease obligations.