View more on these topics

Savills launches student buy-to-let development

FPD Savills has launched a unique buy-to-let opportunity on behalf of Nottingham-based Bournston Developments.

The Junxion, the University of Lincoln&#39s 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&#39s 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.”

Recommended

Tenet buys Premier Protection network

IFA group Tenet, which owns mortgage and general insurance network Lime, has bought Premier Protection network for an undisclosed sum and says further acquisitions could follow. Pure protection network Premier, which will retain its brand name, has around 2,500 non-regulated advisers. The move brings Tenet&#39s total number of members to around 5,000. Premier will continue […]

Mortgage Times launches online pure protection proposition

Mortgage Times has launched its online pure protection proposition, Direct Times. Brokers will now be able to submit business directly via its website, www.directtimes.com to all major product providers including BUPA, Friends Provident, Legal & General, Scottish Equitable, Norwich Union Scottish Provident and Scottish Widows. Mortgage Times says as well as delivering a fast and […]

Rate rise will hit first-time buyers hard, says Lib Dems

The Liberal Democrats have warned that the Bank of England base rate rise will hit first-time buyers hard. Vince Cable, Lib Dem shadow chancellor, says: “People want to know that their homes are secure in uncertain times. Today&#39s interest rate rise is going to cost an average first-time buyer £250 extra a year on their […]

Speculation mounts over Deutsche Bank and Barclays merger

Speculation is mounting that Deutsche Bank, the world&#39s third biggest bank, has set its sights on Barclays as a possible merger partner. The German bank, which has said it wants to link up with a foreign operator, it believed to have settled on three possible partners including Barclays, Netherlands-based ING and Switzerland&#39s Credit Suisse. German […]

Newsletter

News and expert analysis straight to your inbox

Sign up