Timescale: 12 Months
£625,000 Purchase Price
£220,000 Work money
£170,000 Investor input @ 12% = £20,400pa.
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.