Location
This week, I have come across a great development site with full planning consent for 32 residential units, plus a retail unit. The property is located at 450 Nottingham Road, Old Basford, Nottingham, NG6 0FU.
Cost
Currently, the site is advertised on Rightmove with HEB Property Consultants and is available to purchase in the region of £850,000. Personally, I feel that this site has good potential and is well worth a look.
In total the site extends to approximately 0.51 acres.
Key features of the development:
- Full planning consent for 32 residential units
- The plans allow for a sympathetic refurbishment of the bank premises to create 2 x three storey "tri-plex" apartments
- Large 3 bedroomed penthouse
- A very saleable mixture of 1 and 2 bed apartments over four floors
- Full planning consent for a retail unit (Source: Right Move)
Potential benefits of locality
Located within the Nottingham travel to work area, the plot is adjacent to Basford Net (tram) station and within a short distance to Nottingham’s ring road. These methods of travel provide the tenants of the apartments with beneficial links to Nottingham’s city centre and the M1 motorway. Also, it is situated close to supermarkets, Aldi and Sainsburys that are just off Nottingham Road.
The development is located in a good commutable area with short travel to hospitals in Nottingham, such as, Queens Medical Centre and Nottingham City hospital. I think you could potentially rent the large 3-bedroom penthouse to three high earning professionals as a mini-HMO. You would be looking at renting the penthouse to three professionals for around £1350 per calendar month (pcm) in rent. Travel to the hospitals is accessible via bus routes and the tram.
The area is under two miles from the main campus of Nottingham University, meaning the property could be rented out to either students or university staff, as Nottingham is a go to city for students. You could potentially rent out the mini-HMO penthouse to students at £165 per person per week.
The immediate surrounding area is subject to a number of major planning applications which are likely to further improve the locality. There are currently no apartments to rent or buy within half a mile of the development, making the potential residential units desirable (Source: Right Move).
Licensing
It is located within the Selective Licensing designated area for private rented properties, which will cost around £890 per flat. However, the property is not within the HMO additional licensing area and you will not have to worry about Article 4. Despite falling within the citywide mandatory licensing area for HMO, you will not need a mandatory licence for the potential 3-bed mini-HMO (Source: Nottingham City Council).
In my opinion, you would have no problem renting out this property due to the beneficial location with travel links. You could achieve rents in the region of £650 pcm for a 1-bed and £750 pcm for a 2-bed. If you were to sell, you would be looking at achieving a minimum of £150k for a 1-bed apartment.
The most common Council Tax bands are A and D for the postcode in the Basford Ward of the Nottingham City Council (according to Check My Postcode).
Useful links:
You can find full details of the consent and plans on the Nottingham City Council's website - Application No: 18/01382/PFUL3. https://committee.nottinghamcity.gov.uk/documents/s119615/450-452%20Nottingham%20Road%20Nottingham%20NG6%200FU.pdf
You can view more information on the development here: https://www.rightmove.co.uk/properties/115047209#/?channel=COM_BUY
You can access the brochure for the property via the link: https://media.rightmove.co.uk/169k/168662/115047209/168662_450-Nottm-Road_DOC_00_0000.pdf
Information on licensing can be found via: https://geoserver.nottinghamcity.gov.uk/myproperty/
