Case Studies

Giles and Julia registered with us through our free online registration service, completed a simple form, and were contacted by one of our Property Consultants. During the initial strategy meeting which followed, Giles and Julia discussed precisely what they hoped to achieve from building a property portfolio, which in turn enabled their Property Consultant to devise a unique portfolio plan for them. This was then uploaded into the client area of the Serliana website as their own, personalised and secure space.

Like many investors, Giles and Julia had some equity in their home, and the key to getting them started was to access some of this. We referred them to one of our mortgage specialists, who organised a re-mortgage of their home at a more competitive interest rate, releasing £52,000 of equity. The improved interest rate also meant that their monthly repayments stayed the same as before.

One month later

Giles and Julia bought a two bedroom, two bathroom apartment from us for £200,000, at 15% or £30,000 less than market value. The mortgage repayment was £814 per calendar month, based on an interest only mortgage at a rate of 5.75%. The service charge on the property is £1,300 per annum, and the lettings agent fees 10% of the monthly rent plus VAT.

The annual rental we achieved was £1,100 per calendar month, or £13,200 per year. So, each month Giles and Julia pay £814 per month for the mortgage, £130 for the lettings agent and £108 for the service charge. Their monthly outgoing therefore is £1,052, leaving them a monthly income of £48. And, of course, they have a built-in £30,000 equity in the property.

The next step

Giles and Julia intend holding on to their property as the first in a portfolio of multiple properties. So, if for simplicity's sake we assume that the mortgage, rent, service charge and lettings agent fee remains the same, and that property has historically doubled in value every 10 years, Giles' and Julia's property will be worth £400,000 in ten years time. This will give them an income of £48 per month and an equity of £230,000.

Using this first property as a model, five properties worth £200,000 each will give Giles and Julia a £1 million portfolio, with an equity of £150,000 (five x £30,000 built-in equity in each). In 10 years time this portfolio will be worth £2 million, with an equity of £1,150,000.