Overview – Key skills used on this project
- High-level planning expertise
- National planning unit consultations
- Vendor finance
- Commercial change of use
Case Studies
Project details
This commercial conversion project involved a large derelict hotel, in a bad state of disrepair, but with excellent investment potential to be transformed into residential units if planning permission could be achieved.
After research of the local market, resale values, rental figures and financial calculations of redevelopment costs, we found an investment partner for the project.
As this was an off market opportunity, we tracked down the owner of the hotel and presented a proposal. As the hotel building was in such a bad state of disrepair, no mortgage company would lend on the building in its current state. Even bridging finance firms were not too keen and wanted very high deposits.
Based on this we decided to work on a vendor finance model, in place of a traditional mortgage loan, for the period of time it took to complete the refurbishment work.
Planning was agreed for the redevelopment for the building into 32 separate studio units, after consultations with local planning departments. The application was even referred to the National Planning Unit, run under the Secretary of State.
Once the development was completed we reverted to a traditional commercial mortgage on the property.
Results include returns in the form of a good rental yield plus capital appreciation in the overall value of the property.