What We Offer

Property Sourcing

Are you looking to invest in property but struggling to find the right house?

It’s not easy to find the right property to suit your needs and doing this yourself can result in an expensive learning curve. Finding the right property takes time and expertise and this is where Favell Properties can help.

Each of our clients has very different needs. Some are looking for a standard buy-to-let with a high yield, while others may be looking for a distressed property that they can add value to and recycle most of their cash to use on the next deal.

You only pay us when we find you a property and you exchange.

Sourcing, refurbishment & project management solution

In our full package, we take control of everything from start to finish. Firstly we introduce you to our recommended mortgage broker who has a wealth of options to suit investors who want to buy in personal names or as a limited company. The next stage is to introduce you to our solicitor. You only need to have a few conversations with both of them and then we can take over from there.

Once we have sourced your perfect property the next stage is the complete renovation and project management of your property from start to finish. Oliver Favell has over 15 years of experience in the construction industry and project manages each project from start to finish. We will prepare an outline brief and an initial estimate. Once approved, we project manage the entire process. Our turnkey service includes the sourcing and fitting of:

  • Kitchens
  • Bathrooms
  • Decoration
  • Flooring
  • Electrics
  • Plumbing
  • Plastering
  • Damp works

Once the work is completed we can then advertise the property for you and let out the property through our lettings company Favell Lettings, we can also resolve any maintenance issues should they arise.

This is a hands-off investment where the investor will loan Favell Properties an amount of money for a fixed return. All capital is repaid in full once the loan term is completed and all interest is paid monthly directly into your chosen bank account. Your money is secured against a property with a 1st charge so your money is not at risk.

Favell Properties can pay up to 8% interest per year!!

Long Term Loan

  • Minimum Loan Amount £100,000
  • Minimum Loan Term 9 months
  • Interest Earned (12 months) £4000

WHAT MAKES PROPERTY A GREAT INVESTMENT

Property is one of the oldest asset classes...

  • In 1086, the Domesday Book recorded the value of all the land in England at £75,000. Today, that value is £5.45 trillion.
  • In 1950, the average house price was£1,891. Today, it is £286,349, just shy of doubling 7 times – once per decade.

Property is what the wealthy invest in...

  • Real estate is the world’s largest store of wealth and residential property makes up the vast majority of this.
  • “Real estate builds wealth more consistently than any other asset class” – Forbes. The wealthy grow their wealth further through property investment.

Property value continues to rise

  • Property value is predicted to grow 22% in Yorkshire over the next 5 years.
  • In 2007, just before the property peak, Halifax estimated that the UK’s housing stock was worth a total of £4.077bn. Over the past 10 years, that figure has risen to £9.2bn
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WHERE WE FIND PROPERTIES

A common question we get asked is where in the market to look for properties. We’ve broken it down into a simple, easy to understand model, based on a Monopoly board…

“OLD KENT ROAD”

Too Cheap

  • Good returns on paper, but generally long voids and high maintenance.
  • Sometimes too cheap to get a mortgage to leverage funds.
  • One large cost can wipe out a year’s worth of rental profit and high-cost damages are more likely.
  • High turnover of tenants relative to other areas.

“VINE STREET”

Prime Investment Area

  • Constant rental demand ensures cash flow is consistent.
  • Affordable purchase prices.
  • Propensity to increase in value, compounding over years for a healthy profit.
  • Higher return on cash employed; your investment is working as hard as possible for you.

“MAYFAIR”

Too Expensive

  • Less ‘bang for your buck’ – less rental income per round of property purchased.
  • Prohibitively high prices.
  • High relative costs such as stamp duty.
  • Harder to obtain mortgages due to rental coverage.
  • More susceptible to large price fluctuations in a downturn.

OUR T.A.R.G.E.T.

EVERY property we provide must be an excellent investment for our clients. To deliver value for all investors, every property we source undergoes a rigorous test to ensure it meets these six criteria:

Type of property – We start with the end in mind. Each house we buy is a 2, 3 or 4-bed house that will become a tenant’s long-term family home.

Area – The area must be in the ‘prime investment’ range and also sufficiently urbanised and supplied to support constant rental demand.

Regeneration – To encourage appreciation, we seek properties in areas with an abundance of development and new infrastructure schemes nearby, as well as new employment opportunities.

Growth – By analysing Sold STC rates and home ownership rates, we select properties that have the best chance of capturing or exceeding the national average of appreciation of 7.9% per annum.

Established – We only choose properties that are established – a solid investment in well-developed areas. We do not partake in off-plan speculation; you will always be able to see and touch your investment.

Tenant demand – Properties must be in areas where tenant demand is plentiful, with high ‘let agreed rates’ that attract mainly families.

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OUR PERFECT PROPERTY INVESTMENT

Cash required for investment: £40,200

Including ALL costs – deposit, stamp duty, hands-free packaging fees, broker fees, refurbishment and project management.

We aim to deliver a minimum of net 8% ROCE and 6% yield on all our standard buy-to-let properties.

Purchase Price: £75,000
ROCE: 10.74%
Yield: 9.52%
End Value: £100,000 – £110,000
Rental Income: £595 pcm / £7,140 pa
Refurb: £15,000
Stamp Duty: £2,250
Solicitors: £1,200
Source Fee: £3,000

WHY INVEST IN YORKSHIRE PROPERTY?

> Yorkshire house prices rose in 2021 by 9.1%

> The average house price in South Yorkshire in 2020 was £170,000.

> South Yorkshire house prices increased on average by £4500.

> In 1995 the average semi-detached cost £52,000. This now costs £173,000, a £121,000 increase over 27 years

> South Yorkshire’s population is 1,402,918.

> Yorkshire rental amounts increased by 8.1% from 2020 to 2021

> The average rental amount for a 3-bed property in 2022 is £859

HOW YOUR INVESTMENT WORKS

Experience has taught us that our 5-step model is an effective way to invest. Our model means clients can reap all the benefits of property investment, without any of the effort.

INITIAL MEETING & CONSULTATION > PROPERTY SEARCH > PURCHASE > REFURBISHMENT > PROFIT

1. MEETING & CONSULTATION

We like to deal with people in person, not just over the phone or a computer screen. We like to meet our investors the old-fashioned way so that we can get a feel for each other and really understand your intentions and goals. That’s why we always begin the process with an in-depth consultation.

What we do:

  • Ask questions to establish your needs to ensure they are achievable.
  • Put together a timing plan for your investments. Timing is key in property investment.
  • Introduce you to our accountant who will make sure your investment is dealt with in the most tax-efficient way.
  • Set you up with our expert brokers to start the financial arrangements.

2. PROPERTY SEARCH

We will continue our search until we find the perfect property for you to invest in. We scour the local market, using years of local knowledge and contacts, to establish the very best investment opportunities. We check all of our properties using our T.A.R.G.E.T criteria to ensure it meets our standards.

What we do:

  • We find the right property for you by utilising our expert brokers, our trusted agents or industry contacts.
  • Put forward the right property for your consideration in an easy to digest manner and an easy to understand format.

3. PURCHASE & PROGRESSION

What we do:

  • We speak with our solicitors who help us to complete purchases in a timely manner. They work exclusively on investment properties and get you moving through searches and resolving enquiries as quickly as possible.
  • Work with the broker to submit the application. Our average purchase time is significantly lower than the national average. We will need you to fill in some paperwork but we will help you do this.

4. REFURBISHMENT

Most properties bought as rental investments need some level of refurbishment. Working with tradespeople is often cited as one of the biggest challenges faced by buyers. However, Favell Properties ARE the tradespeople in this case. We have years of experience in all trades and a team of experienced, reliable tradespeople to complete the work in-house.

What we do:

  • We manage the full refurbishment process for you. Having been provided with a thorough report at the purchasing stage, our project manager will be expertly equipped to oversee your property’s refurbishment.
  • It is so important to get value for money in a refurb and knowing the standards to which to complete work can be a challenge. Our team know the right balance between aesthetics, durability and good value. This ensures your money is working as hard as possible, adding value to the property and creating a lovely home for your tenants.
  • We manage the refurb and keep you up to date with photos on a weekly basis.

5. PROFIT

Other companies will consider their job done once refurbishment is complete. Our job is not over until you are receiving money into your bank account.

What we do:

  • We believe your goal is our goal. Our job is not complete until you are getting an income. We ensure all the CP12s, electrical certificates and any other safety features needed at your property are in place.
  • We will advertise your property for you online and find a suitable tenant to rent your property going through the correct vetting process.
  • Ensure all matters relating to deposit protection schemes and inventories are thoroughly carried out.
  • Make sure your tenant is properly referenced to protect your interest.
  • We will oversee your tenant’s move into your property and ensure a standing order is set up so you have regular cash coming in.