St James' House
Grade II Listed Conversion Into 5 Flats
Internal Staircase
Front Elevations
Back Elevations
This is a Grade II listed building spanning five stories, which had served as a commercial establishment for two decades, presented a significant challenge due to its lack of accompanying land. This absence of land posed a substantial hurdle in the conversion process from commercial to residential use. The project currently has been converted to residential, and we are in the process of readying a planning application for the further conversion into multiple units.
Paul Stock ACCA BA (hons) APMA AFA MAAT
Developer Of This Project
Financial Metrics
Project Timeline
Early 2018
The commercial property was purchased with the intent to turn it into residential.
Initial Outlay - £120,000
July 2018
Soft planning was achieved, when the building had planning and listed building consent to turn it into residential.
Initial Outlay - £152,000
GDV - £450,000
Profit - £298,000
July 2018 - September 2018
The building was refurbished, £32,000 pending completely unlocking that £298,000 profit.
September 2018 - Current
This building commands one of the highest residential rental incomes in the town, and has been used as a grand buy to let property.
Current Plans
This building has been identified to have the potential for redevelopment into 4 flats. These flats would be worth approximately £800,000.
Initial Outlay- £150,000
Build Cost + Fees - £160,000
Total Costs - £310,000
Estimated Profit - £490,000
How We Made Our Gain
After discovering that neighbours had been utilising the back garden for parking purposes for over two decades, thereby asserting rights to the space, we embarked on a thorough examination of the building’s historical records. Through meticulous research, we identified a period during which the garden had been sublet to another party, thus violating the terms of the agreement and allowing us to regain possession of the garden.
This successful reclamation of the land enabled us to proceed with the conversion of the commercial office block into a residential unit, as stipulated by the council’s requirement for garden space in residential developments.
Despite incurring approximately £32,000 in building works and planning fees, our initial investment of £120,000 yielded an immediate appraisal value of £450,000 post-conversion, marking a significant gain in value.
Risk Management
Buying At Low Price
The amount we bought this deal for was unbelievable, half the price of a house now in the area. This covered us from most circumstances.
Due Diligence
As nationally recognised due diligence experts, we try and kill the deal - we only go for it if it's amazing
Contingency Funds
For every project we ever do, we set aside a contingency fund, this covers us for any unexpected repairs or costs.
4 Exit Strategies
For every project we aim to have at least 4 different exit strategies, this allows us to exit the deal whenever.
Exit Strategies
Buy To Let
This was the route we took, as this would be the most cost effective and allowed us to meet our project goals.
Sell
This would have been the last resort, but due to the low purchase price, it would generate £100k profit.
Hotel Investment
This would have been a lucrative route, with high demand and no need to convert back to residential.
Keep As Offices
This was making an income from it's tenure as offices, and this would have been profitable as an investment.
How We Funded This
Initial Deposit
The initial deposit for this project was provided by one of our investors. To our investors we offer:
- 15% pa interest
- One to One Mentoring And Training
- Charges Against Our Portfolio
- Broaden Your Experience By Helping Us Project Manage
Bridging Loan
This was initially secured on a bridging loan, and it was then converted to a buy to let mortgage, once the planning had been accepted.
Buy To Let Mortgage
Our main concern was paying back our investor, and this was achieved quickly and efficiently, as so much money was able to be pulled out.
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