UK Property Conversions -Commercial to Residential Flats Experiences
We have 2 focuses in our work in the UK property market. One is providing HMOs for Social housing. We convert terraced houses into HMOs and rent them for a 5 year guaranteed period to a major PLC with no voids and virtually no maintenance. We keep some of these for ourselves and we sell some off to investors between a 8-9% Net yield.
In conjunction we convert warehouses, stores and offices into flats. It is really not all that easy in the beginning however if you are committed you learn quickly. Our first experience was rather a nightmare. We had an architect who messed up the sizes of the rooms so we lost an end suite due to sizing. This cost us alot of money. More so there was no communication. Contrarily we stumbled upon a father and son building company who have been FANTASTIC. They went to the council countless times to straighten out the architects work. With tenacity we made the deal work and we made almost a 40% return. On other conversion projects we have done much better. We have learned the importance of getting a QS ( a costing of the project from an outside source) as well as quotes from builders. However in every project you will have unknowns pop up and you must have the financial resources to cover them.
We have built a track record on smaller conversions and now looking for slightly bigger ones. With bigger ones we have the choice of the bank route which we do not like giving PGs( actually one bank has agreed as long as we put up a debenture) or working with JV partners. I show potential JV partners prior projects pictures, before and after and more importantly the completion statements.
If you are looking at UK property conversions please feel free to contact me and I will try to help you as best as I can…
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