Project Churchill
From Tired Terrace to Upmarket Buy-to-Let
Project Churchill was acquired as a run-down two-bedroom terrace with the clear objective of repositioning it into a modern, upmarket Buy-to-Let through a focused and disciplined refurbishment. The opportunity was sourced direct to vendor following a serendipitous conversation, with the offer agreed on Christmas Eve, demonstrating our ability to secure deals off-market rather than relying solely on estate agents. The property was purchased using a mortgage and underwent a moderate refurbishment to modernise the interior, improve the overall finish, and materially enhance its rental appeal. Following the expiry of the initial two-year mortgage period, the property was refinanced at a higher valuation, validating the value-add strategy and enabling capital to be recycled while retaining the asset. Since completion, the property has been let to a long-term tenant at £900 per calendar month with no voids, reinforcing the strategy of upgrading quality to drive tenant stability and consistent income.
The Numbers
Purchase Price (with mortgage): £130,000
Refurbishment Cost: £20,000
Total Project Cost: £150,000
Post-Refurb Refinance Valuation: £180,000
Refinance at 75% Loan-to-Value:
→ £135,000 mortgageMonthly Rent: £900
Annual Rent: £10,800
Returns
Gross ROI (on Total Project Cost, pre-refinance)
£10,800 ÷ £150,000 = 7.2% gross ROI
Post-Refinance Capital Position
At purchase, assuming a typical 75% Loan-to-Value structure, the initial mortgage would have been approximately £97,500, requiring a deposit of around £32,500, plus the £20,000 refurbishment, resulting in approximately £52,500 of cash invested.
Following the refinance at a valuation of £180,000 and 75% Loan-to-Value, a new mortgage of £135,000 was secured. This repaid the original mortgage and released approximately £37,500 of capital back into the business.
Original cash invested: ~£52,500
Capital released on refinance: ~£37,500
Capital remaining in the deal: ~£15,000
Post-Refinance Return on Capital (ROCE)
Annual Rent: £10,800
Capital Left In the Deal: ~£15,000
ROCE = £10,800 ÷ £15,000 ≈ 72% gross
Investment Outcome
Through direct-to-vendor sourcing and a targeted refurbishment, this project converted a tired asset into a high-quality, low-friction rental that has delivered consistent income with zero voids to date. The refinance validated the value-add strategy, recycled the majority of the original capital, and left a relatively small amount of capital in the deal while retaining a strong, cash-flowing asset. This is a clear example of how disciplined acquisition, refurbishment, and refinancing can compound portfolio growth while building durable, long-term income streams.
