Conversion of a care home into residential flats
Region:
Debt Raised:
Somerset
£300K
The Scenario
Client had an existing care home, full capacity and great income. However after running it for most of their lives, they wanted to move on. Selling as a care home would of involved extended timescales, CQC, further investment etc, all of which they did not want to pursue.
They did get offers from numerous developers, which prompted them to get in touch with us and check what could be done as no experience with building or development and no cash.
The Solution
We assisted the client with the change of use application and it was approved for 5 residential flats. The property was valued at £500k, with a commercial mortgage of £100k with the conversion costs of circa £200k and a timescale of 12 months for the conversion.
We paid off the commercial mortgage and funded the conversion in arrears over 3 payments to keep the funding costs to a minimum. Total net borrowing was £300k, the great news for the clients is the works were completed earlier than planned and 2 properties sold prior to completion which has already repaid the loan.
The overall GDV (final value) was £1.25m. The clients are pleased they spoke to us and now understand why the developers were so keen to buy the care home.
Similar?
If this sounds like something you would like to do, it’s worth us having a 5/10-minute conversation. It costs nothing to talk through and even if we don’t find the immediate solution, we can certainly advise and plan how it can be achieved.
Get in touch here or use the form below, we can call you during the day or evenings/weekends.
Let us know when suits and we’ll find a solution/make a plan.