Care home conversion to flats
Hello all,
Due to Care Quality Commission rulings numerous care homes all over the country have been shut. Due to the NHS crisis a decent number of public buildings e.g. homeopathic hospital, childrens hospitals etc. are ripe for development.
Background: I run a successful HMO in a limited company structure.
I am now interested in property investment with a bit more scale. i.e. converting a care home to a block of circa 20 flats. This is obviously quite complex and not for everyone.
I have:
1/ Good accountant
2/ Average lawyer!
3/ A highly capable builder & strong relationships with all trades in local area
My strategy:
1/ Add value through refurbishment / changing of planning use
2/ Hire architect to get planning permission and optimise flats design
The big question: Finance!
I do not want to use a bridge – I think it will take a huge chunk out of the end profit and will also put pressure on the entire project.
I would ideally like to hold the entire block and rent them for the next 10 years+
My issue is that a BTL lender wont lend on something that needs converting first and development finance want me to sell within a certain time frame.
How can I get around this?
Thanks
Michael
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Similar tax for similar incomes
Member Since January 2011 - Comments: 12193 - Articles: 1395
7:48 AM, 9th March 2017, About 9 years ago
One important professional adviser which seems to be missing from your list is an NACFB registered Commercial Finance Broker who specialises i funding projects of this nature.
I retired from that profession in 2009 after having built the largest Commercial Finance Brokerage in the UK, which ranked #38 in The Sunday Times Profit Track 100 in 2008. I was also one of the founders of the National Association of Commercial Finance Brokers back in 1992.
There is one commercial finance broker in particular that I would recommend you to make contact with. His name is Malcolm Jones and he is the Principal of Brookland Commercial Finance. He is a Property118 member and has supported us from the day we first went online in January 2011. I have posted a link to his member profile below, which also includes a contact form.
https://www.property118.com/member/?id=3353
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Member Since September 2013 - Comments: 104 - Articles: 3
9:19 AM, 9th March 2017, About 9 years ago
Michael, in addition to the suggestion by Mark, do you have the opportunity to release funds from either your existing BTL portfolio or via your residential property? This could be in addition to using Commercial Finance, perhaps to increase your deposit to lower the overall LTV.
Member Since June 2016 - Comments: 21
1:13 PM, 9th March 2017, About 9 years ago
I’m in the process of buying a 15 bed HMO and will be using commercial finance. This is sorted subject to final admin.
Next project I’ll look at using the contact above.
You could also look for JV funding too.
As a doctor I agree there is an opportunity here for these types of properties just like there may be opportunities to pick other properties from landlord who lack knowledge and are caught out by the new tax rules.
Member Since January 2011 - Comments: 12193 - Articles: 1395
1:24 PM, 9th March 2017, About 9 years ago
Reply to the comment left by “Amjed Khan” at “09/03/2017 – 13:13“:
In that case you might want to have a chat with the joint venture financiers who sponsored the link below
https://www.property118.com/kensington-finance-group/94851/
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Member Since October 2014 - Comments: 3
2:06 PM, 9th March 2017, About 9 years ago
Have you looked at crowd funding options.??