FPD Savills has launched a unique buy-to-let opportunity on behalf of Nottingham-based Bournston Developments.
The Junxion, the University of Lincoln's latest student accomodation has been designed as 99 city centre apartments and are being offered for sale as a new concept in buy-to-let.
Situated in the very heart of Lincoln, close to the university, each apartment which has planning permission for residential use, comes fully furnished and has been designed with ensuite study bedrooms, a communal living area and fitted kitchen.
Sold on a 199 year lease, The Junxion, which is made up of four to six bedroom apartments, will be capable of housing up to 569 students from September 1 2004.
A comprehensive management structure has been put in place and will be fundamenntal to the development's success. Service charges payable to the company will ensure that essential maintenance such as cleaning, site security, the provision of electricity and water to communal areas is provided. In addition the service charges will also act as a buffer absorbing rental voids incurred at the development during the academic year.
Prices for the apartments range from between £160,000 to £275,000 with projected gross rent returns of around 8% and budgeted net returns of arounnd 6% for the first year of operating.
Simon Scott, director and head of Savills student team, says: “When compared to traditional residential lettings, this represents a competitive return. Factor in the reduced risk of voids and one can see that a development such as this offers a very attractive alternative to the more traditional buy-to-let schemes.
“The Junxion advances the buy-to-let model, providing a city centre property investment, with an obvious income stream in place from day one.”