See how we transformed a derelict house into a thriving co-living HMO generating double-digit returns for investors and much-needed homes for the community.
From Derelict to Desirable
When Virtus Group first walked into the empty building on Pasley Street, we saw beyond the peeling paint and damp walls – we saw opportunity. This detailed case study reveals how we transformed a derelict house into a thriving co-living HMO generating double-digit returns for investors and much-needed homes for the community.
The Challenge
The property had been vacant for over 3 years. Structural issues included a leaking roof and subsidence in the rear annex. Traditional lenders were wary, but our analysis showed strong fundamentals: location within walking distance to the city center and a severe shortage of high-quality shared accommodation in the area.
The Transformation
We acquired the property below market value using bridging finance. Our 6-month refurbishment plan involved:
- Complete structural repair and re-roofing
- Reconfiguring the layout to add 2 en-suite bathrooms
- High-spec soundproofing and insulation to exceed HMO standards
- Modern interior design tailored to young professionals
The Result
The project was completed on time and budget (£120k build cost).
- Valuation Uplift: The property was revalued at £450k post-works (a 35% uplift on total cost).
- Occupancy: Fully let within 10 days of marketing.
- Investor Return: Our equity partners achieved a 12% annualized return upon refinancing.
This project exemplifies our core philosophy: unlocking hidden potential to create value for everyone involved.