Leeds serviced apartments for sale

Eight of Leeds' top serviced apartments have popped onto the market and caught my eye this week, writes Sq Ft editor, Michele Andrew. A generous investor package of over £10,000's worth of freebies comes with each unit. But is that enough to sweeten the deal?

The Bridge at Leeds Waterfront 

Leeds city centre may be suffering from a glut of faceless new build, but these units interested me enough to warrant a trip down Lower Briggate to take a closer look.

It's an area that I know well, having led the marketing of Leeds Waterfront's redevelopemnt in the 1990s. Back then, such things as serviced apartments didn't exist. The land upon which The Bridge Apartment s now stand was a patch of scrubland sandwiched between Leeds Bridge House (a replica of the wonderful Flat Iron building in NYC) and The Salem Church. Glamourous it was not.

But those with vision started to develop the South Bank of the River Aire. Joshua Tetley opened a visitor centre next to the eponymous brewery, British Waterways sold their Victorian HQ off to be reshaped as waterfront lofts and Malmaison gutted the old bus offices to bring boutique chic to Leeds Bridge.

By 2004, the timing was right to offer fully-serviced apartments to Leeds' business tourists. The Bridge Residences, conceived by developer Don Little, opened to offer an alternative to booking into an hotel.

The idea proved popular. The Bridge Residencies are still run today by Don's daughter, Rebekkah, as serviced units. Surprisingly, 8 of the 28 units have come onto the market.

£6k furnishing packs given free

Appealing to both investors and owner-occupiers, the apartments are being sold with attractive extras. "Each comes with the existing furnishing package given free of charge. These are quality furnishing packages with glass tables by Green Apple, leather sofas, dining suites, 5* bedroom suites and all of the extras expected by a high-flying tenant," explains Christine Yorath the selling agent.

Best known as a developer of luxury apartments and the owner of rental agency "Flats in Leeds" , Christine Yorath is not an estate agent. So what is she doing selling somebody else's flats?

"Don asked me and I said 'Yes' because I like the units and because I can see that they're a great buy." Does this mean that the Yorath name will soon hang above a string of estage agents? 

"Goodness no!" laughs Christine. "I'm busy enough with my own developments. But I do like these... buyers will have the stamp duty paid, the legal fees paid if they use our lawyers, one year of leasehold underground parking free and the first year of service charges."

"The service charges will include water and a daily rubbish collection, plus the benefits of a building cleaned daily for the remaining serviced apartments." Not to mention a great location.

Value per Sq Ft

So far so good. But do the figures stack up? "These are generously-sized apartments, with square footage at well below market price," enthuses Christine. "They average out at £228 per sq ft." (Cheaper then, than the average square footage of a Leeds city centre residential unit - around £250 per sq ft, according to Liam Bailey, Head of Residential Research at Knight Frank's London office.)

The larger the unit, the more attractive the yield. A 2-bed, 2-bathroom apartment on offer here for £179,000 would need to generate a rental return of £900 to achieve a yield of 5%. But 2-bed flats in central Leeds can be had for less than £600 pcm.

Rarity of 3-bed apartments

It's the rarer 3-bed, 2-bathroom units that start to appeal. "Three-bed units are few and far between in central Leeds," states Christine. "Such is the competition for them that prospective tenants end up in a bidding war. With three people sharing at £600 a month each, the returns look most attractive."

But how attractive? This is a market where sellers are keen to talk up investment returns. A 3-bed apartment at The Bridge costing £295,000 might return a yield of over 6% if three sharers each pay £600 a month. Drop the rental to £1500 and the yield falls to just over 5%

My cousin Martin, the self-styled Money Saving Expert, profiles top savings accounts paying 6.5% with instant access (and a guarantee the rate will stay high) on his website. But savings accounts are not as sexy as city centre apartments with designer bathrooms and Italian furniture.

Moreover, savings accounts don't generally hand out £10,000 of added extras when you sign up. (Unless Cousin Martin's missed something.) Or benefit from high-profile redevelopment plans. The Bridge is an altogether more theatrical investment choice - which should suit those who play to win.

All enquiries to Christine Yorath: 0113 237 5119