Conversion of a disused pub into a multi- residential scheme. The asset was refinanced onto a long term BTL facility.
Our client, a property developer, purchased a disused pub in Hastings, East Sussex, for £425,000 utilising a Tuscan Capital bridging facility of £300,000.
The building included five flats on the first floor which required total renovation. The client obtained planning consent to reconfigure the ground floor to provide a further five self-contained bedrooms, all en-suite.
With a refurbishment budget of £150,000, which Tuscan Capital fully-funded in two tranches, our client retained the services of an experienced architect and a qualified building surveyor to manage the project, which was successfully completed inside a six-month programme.
The building is now yielding £80,000 p.a. and is valued at £900,000. This has enabled the developer to refinance Tuscan Capital’s bridging facility and replenish his refurbishment costs via a ten-year remortgage for £600,000 provided by a well-known challenger bank at an interest rate of 4.5% p.a.