LEASE OPTION, PENISCOLA, SPAIN, INCOME OPPORUNITY

Placed: 30/10/17
Region: Cheshire
Location: Crewe
Category: Real Estate


Content of the advertisement:

Property type: House, Number of bedrooms: 2

Peniscola old town, Castellon.
Multiple purchase options
€450 euros per month on 10 year lease with option to buy at €90,000 euros at end or during the term. Built in equity as price is below current value. €16,000 REFURB NEEDED.

This is a completely unique opportunity to purchase a historic 2 bedroom house located in the historic old town of Peniscola, Costa del Azahar in Castellon on a 10 year lease option.

It is virtually impossible to find a property for sale in the old town of the resort which is located within the famous and historic castle walls which played home to Pope Benedict XIII from 1415 to 1423 making this a one-off investment opportunity.

Peniscola is located in between Barcelona and Valencia with a population of approx 8,000 permanent residents which swells to over 1,000,000 tourists of Spanish and international descent in the months of July and August as well as huge demand for the annual film festival and visitors throughout the year visiting the many tourist landmarks and in the resort and surrounding area.

The town is named on the official list of Spain’s most beautiful towns and it was recently featured in the Sunday Times feature “Spain’s secret weekends” with a standout sub headline of “How on earth has a medieval city all but surrounded by the sea, with a humongous Templar castle, magnificent beaches and a passion for food that keeps more than 200 restaurants in business, managed to keep itself out of Britain’s holiday limelight?”

The house itself is located on a cul-de-sac style street within the old town just one street forward from the castle and cathedral entrance and one street back from the castle walls offering spectacular views of the bay.
The old town plays hosts to lots of bars, restaurants, shops, the castle, cathedral and a lighthouse as well as being a 5 minute walk from over 200 bars and restaurants in the new town.

It is an extremely unique property with 2 bedrooms on the upper floor of the property and an entrance dining room/ kitchen and bathroom on the ground level. The upper level is accessed via internal stairs with the original castle wall making up the back wall of the staircase offering a historic feature.

The property is in need of a refurbishment and modernization which is reflected in the BMV (Below market value) purchase price of 90,000 euros – modernized valuation of the property is 145,000 euros and current valuation of 110,000 euros.

Planning permission is already in place for a full refurbishment and complete modernization to luxury standard with a price of 16,000 euros agreed with architects and building contractors in the town.

Purchase options

• Agreed Purchase Price 90,000 euros
• Current Valuation 110,000 euros
• After Refurbishment Valuation 145,000 euros
(20,000 euros equity based upon purchase price and equity of 55,000 after refurbishment)
• 10 year lease option (optional purchase after term is completed on offer by the owner)
• Monthly payment to owner of 450 euros per month
• Peak Weekly Rental of 150 euros per night x 18 weeks per annum = 18,900 euros
• Mid Peak Rental of 100 euros per night x 10 weeks per annum = 7,000 euros
• Low Season Rental of 80 euros per night x 10 weeks per annum = 5,600 euros
• Total Annual Return – 31,500 euros
(Conservative/ Worst case occupation of 38 weeks per annum provided – all year round occupancy is achievable due to demand for winter sun and the historic location of the old town)
Year One Yield
• Lease Option Brokerage Fee 7,500 euros (One off fee)
• Monthly Payments Total 5,400 euros
• Refurbishment 16,000 euros (One off fee)
• Utility Bills 1,200 euros
• Annual Tax 500 euros
Total Costs – 30,600 euros
Total Return 31,500 euros
Net Yield Year 1 – 900 euros
Annual Yield Year’s 2 – 10 (Annual Figures)
• Total Costs of Monthly Payments, Utility Bills and Tax – 7,100 euros
• Total Income – 31,500 euros
• Net Annual Income – 24,400 euros

• Net Yield of year 1 plus years 2-10 = 220,500 Euros
£7500 broker fee plus legals of approx £500 apply.

Price / Salary: £7,500.00