064 - Commercial to Residential Conversion

<p><span style="font-weight: 400;">"No Money Left In and £150,000 Cash Out"</span></p> <p> </p> <p><span style="font-weight: 400;">In this BRAND NEW Podcast Series, we will be going Behind the Scenes on some of the UK’s most Creative, Lucrative and Award-Winning Deals 🤩</span></p> <p> </p> <p><span style="font-weight: 400;">Hosted by me, Mark S Barrett from The Property Brokerage, this month it gives me the absolute pleasure to welcome Max Scott, fellow Property Entrepreneur Board, member who will share his insights on all things property conversion.</span></p> <p> </p> <p><span style="font-weight: 400;">In this podcast, we review Max’s commercial to residential conversion at Knighton Chambers, Bognor Regis.  The property was 80%  vacant when purchased and after successfully getting Permitted Development planning permission under Class O, they carried out the conversion to 15 studios. </span></p> <p> </p> <p><span style="font-weight: 400;">The property was refinanced as it was being kept within their portfolio and a long term internal repairing lease was negotiated with a student let company.</span></p> <p> </p> <p><span style="font-weight: 400;">Purchase price:</span> <span style="font-weight: 400;">£350,000</span></p> <p><span style="font-weight: 400;">Refurb cost:</span> <span style= "font-weight: 400;">£505,000</span></p> <p><span style="font-weight: 400;">Costs:</span> <span style= "font-weight: 400;">£38,000</span></p> <p><span style="font-weight: 400;">Total costs:</span> <span style= "font-weight: 400;">£893,000</span></p> <p> </p> <p><span style="font-weight: 400;">New valuation:</span> <span style="font-weight: 400;">£1.4m</span></p> <p><span style="font-weight: 400;">New mortgage:</span> <span style="font-weight: 400;">£1,050,000</span></p> <p> </p> <p><span style="font-weight: 400;">Exit: retained as an asset for own portfolio with no money left in and £150,000 cash out</span></p> <p> </p> <p><span style="font-weight: 400;">If you want to understand how to make commercial to residential conversions wo