Complexity Does Not Make For Speed Of Transactions

byAlanJE

2.5K followers

1 month ago

Hi Everyone,

I hope you had a successful week just finished.

I had some good news today, which was that a particular project of ours was deemed desirable for Specialised Supported Housing by the local housing commissioner. This is for housing vulnerable people of different types, those who need 24/7/365 care in their own home.

This is just the news we have been awaiting for weeks, as our whole financing proposal depends upon the end use of this building and the site around it (a large garden).

What it means is that we can evaluate the new asset after repurposing at a higher capital value than for normal housing.

We will be able to secure a 20 year Full Repairing and Insuring lease on the property after we have converted it, and we will let the building to a Registered Care Provider who will house vulnerable people in the building. The annual lease amount will be higher than normal rental values, and there will be an inflation clause so that the rental is increased every year in line with the retail price index (inflation).

By effectively partnering with the Loca Authority we will have a more sympathetic hearing when seeking planning permission as well.

This particular strategy is one of the most profitable in the UK at the moment, and we intend to carry out more of these sort of schemes.

So a satisfying end to this week after many weeks of hoping for this answer.

I wish you all a relaxing weekend wherever in the world you are.

Cheers

Alan