Timescale: 12 Months
£1,340,000 GDV
£625,000 Purchase Price
£220,000 Work money
£100,000 lending
£170,000 Investor input @ 12% = £20,400pa.
£374,000 Profit
We have kept this house as we have the lease with the care provider but we made sure they had an option to purchase so we have an exit.
£114,000 Gross rent
This former 4 bedroom residential house near Southampton was bought for the sole purpose of being used as a specialist care home which we bought in 2017. One of our clients who is a care provider, asked us to find them a home which we could transform into an 8 bedroom house. Once we agreed the purchase we applied for planning for change of use, which included the garage conversion and a single story extension at the rear.
Our client had very specific needs and they had to meet CQC (Care Quality Commission) regulations to gain the appropriate registration.
We signed a pre-lease as soon as the building completed so that both parties had commitment once we had purchased. We then carried out over £220,000 worth of works to the building giving 8 double bedrooms, 6 with en-suites and 2 sharing a jack & jill style bathroom.
Once the work was completed the full lease was activated and signed, which we agreed as a 25 year full repair & insuring lease. With the sign off from CQC, the care provider could care for their clients.
