CARE HOME CONVERSION

LENDER – SHAWBROOK BANK

Loan Amount – £900,000

Interest Rate – 4.54% pcm

REFINANCE OF A CONVERTED FORMER CARE HOME INTO A 21 UNIT INVESTMENT PROPERTY, PROVIDING PREDOMINANTLY SERVICED ACCOMMODATION

Clients are well established and very experienced property investors with a history of undertaking previous property conversions of a similar nature.

The subject property is a 1930’s tudor fronted property previously used as a care home with 19 letting rooms.

These clients acquired the property for £450K in 2020 and set about converting it in 2021 into an 11 bed HMO with three studio apartments and 7 serviced residential units at a total cost of £300K.

We were approached to acquire term funding on the completed converted property which was valued at £1.200M. We secured 75% LTV funding of £900K via Shawbrook on a ten year term loan, with a 5 year fixed rate of 4.54%.

The clients were delighted with the outcome because this refinance provided them with the additional capital for them to embark on further projects..

The deal completed in February 2022 and was the first part of an ongoing programme of moving assets from personal names into a limited company SPV, thereby considerably reducing the borrowers’ tax liability.

As part of this exercise the borrowers raised £400K to put towards the deposit on further planned HMO acquisitions.