We set up a legal contractual JV partnership with Ms X, where the title deeds were in the partner's name. We recently completed this JV project, where we sourced a one bed maisonette for £201,000 in London and spent £65,000 to refurbish and renovate to a very high standard and also gained planning approval for loft conversion for a second bedroom.
We were offered £331,000 to sell without doing the loft conversion, making a profit of over £60,000 over 4 months. Our partner decided to rent this one bed maisonette for £1600/month.
The deal will exit in around 5 years subject to the JV partner's agreement. In the meantime both us and our JV partner take 50% each of the monthly rental and in a few years time, both parties will take advantage of the capital appreciation.
Our investor was getting 0.5% on her savings of £275,000 from her bank. This equates to £114/month. Now she will get £800/month!
With such a high ROI she is now looking into another JV with Us.
