Enhancing Value and Functionality of an House of Multiple Occupation, 71 Pinhoe Road, Exeter
One of our standout projects was the transformation of a student HMO (House in Multiple Occupation) located at 71 Pinhoe Road in Exeter.
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At AJW LAND, we excel in unlocking the potential of residential properties, especially when it comes to navigating complex regulations and tight deadlines. One of our standout projects was the transformation of a student HMO (House in Multiple Occupation) located at 71 Pinhoe Road.
This project required not only securing a Certificate of Lawful Use within an Article 4 area but also undertaking a full renovation to enhance the property’s functionality and market value. Despite the challenges of a tight timeline, we delivered a highly successful outcome that maximised the property’s value and ensured its long-term viability.
Introduction
The Challenge
Securing a Certificate of Lawful Use in an Article 4 Area
71 Pinhoe Road was already operating as a student HMO, but due to its location within an Article 4 area, obtaining a mortgage proved difficult without a Certificate of Lawful Use. In Article 4 areas, which are subject to stricter planning controls, converting a property into an HMO typically requires planning permission. However, as the property was already in use as an HMO before the Article 4 designation, it was eligible for a Certificate of Lawful Use, which would confirm its lawful status and make it easier to secure mortgage lending.
Our first task was to gather the necessary evidence to support the application for the certificate. This involved compiling detailed records that demonstrated the property had been continuously used as an HMO prior to the introduction of Article 4 restrictions. Through careful documentation and a thorough understanding of planning law, we successfully obtained the Certificate of Lawful Use. This critical step not only enabled the property to be mortgaged but also provided the security needed for future investments.
Overcoming Challenges
Completing the Project in One Month
One of the most significant challenges of this project was the tight timeframe. The renovation had to be completed within the month of August, while the students were on holiday, to avoid disrupting the academic year. This deadline required meticulous planning, precise scheduling, and efficient execution.
To meet this challenge, we coordinated closely with our construction team, ensuring that all necessary materials and labour were in place well before work began. The project was managed on a day-to-day basis, with progress monitored closely to ensure that each phase of the renovation stayed on track. Despite the tight deadline, we completed the renovation on time, allowing the property to be ready for the students’ return in September.
Remortgaging at a Higher Value
Following the successful completion of the renovation, the property was revalued at a higher market value due to the addition of the extra bedroom and the overall improvements made to the property. This increased valuation allowed us to remortgage the property, pulling out the initial investment and creating a stronger financial position for future investments.
The ability to remortgage at a higher value was a testament to the success of the project. By adding value through strategic renovation and ensuring the property was fully compliant with HMO regulations, we were able to secure a significant return on investment. This approach not only maximised the immediate financial returns but also positioned the property for long-term success in the student rental market.
Coordination with HMO Licensing
Throughout the project, it was essential to maintain full compliance with HMO licensing requirements. This involved close coordination with local authorities to ensure that the property met all the necessary standards, particularly with regard to room sizes and overall safety.
Our team worked diligently to ensure that all modifications to the property adhered to HMO regulations. This included verifying that the new bedroom met the minimum size requirements and that the property as a whole complied with safety standards, such as fire safety and access regulations. By ensuring full compliance, we protected the property’s HMO licence and maintained its viability as a student rental property.
Conclusion
A Comprehensive Success at 71 Pinhoe Road
The project at 71 Pinhoe Road exemplifies AJW LAND’s ability to navigate complex regulatory environments, execute high-quality renovations, and deliver strong financial outcomes within tight deadlines. By securing the Certificate of Lawful Use, we ensured that the property could be mortgaged, providing the financial foundation for the project. The strategic renovation added an extra bedroom, increasing the property’s value and rental potential, while our effective project management ensured that the work was completed within the tight one-month timeframe.
This project highlights our expertise in managing every aspect of a property development, from legal and regulatory challenges to design, renovation, and financial strategy. By delivering a comprehensive solution that addressed all aspects of the project, we not only maximised the property’s value but also positioned it for long-term success in the student rental market.
At AJW LAND, we are committed to turning challenges into opportunities, delivering results that exceed expectations. The success of the 71 Pinhoe Road project is a testament to our ability to manage complex projects with precision, care, and a focus on maximising value for our clients. Whether dealing with regulatory hurdles, tight deadlines, or complex renovations, our team is ready to help you achieve your development goals.
The Build
Maximising Space and Value
With the legal aspects resolved, we turned our attention to the renovation of the property. The primary goal was to increase the property’s value by adding an extra bedroom through an internal layout change. This required a thoughtful redesign of the existing space to ensure that the new bedroom would meet the necessary standards while maintaining the overall functionality of the property as a student HMO.
The renovation involved reconfiguring the interior to create a more efficient use of space, allowing us to add an additional bedroom without compromising the comfort or convenience of the other occupants. We worked closely with HMO licensing authorities to ensure that the new room sizes were fully compliant with regulations, a crucial aspect for maintaining the property’s HMO licence.
The renovation also included updating the property’s fixtures and finishes to appeal to the student rental market. By modernising the interior and optimising the layout, we were able to enhance the property’s attractiveness to potential tenants, thereby increasing its rental income potential.