Turning hotel into flats - planning permission etc

drummer_666

Hi,

I have seen a particularly cheap 16 room hotel (£25k) go up for sale and I'm wondering whether it may be a good investment, converting it into flats.

I would need planning permission for change of use, does anyone know if this is a difficult process and whether this is usually granted (there are several other hotels and b&bs in the area, so don't imagine there is a shortage)

This is my first thought about conversions like this and I don't see myself getting enough money for this right now, but I'm intrigued to find the information if not for now then for a year or so

Fire_Fox

Have an informal chat to the planning department at the council, how favourably they will view such a proposal varies with local policy.

GDB2222

Is this in Blackpool?

BTW, have a discussion with an architect about what is involved in the conversion. You will probably have to add massive sound and thermal insulation, so you may find the cost far, far higher than you expect.

drummer_666

thanks for your quick commnents

it's in the outskirts of Birmingham

even just turning it into a huge house would make it far cheaper than buying a big detatched house

SalsaDanca

I've been nosy and found the property on Rightmove. Are you aware that the hotel is leasehold? I don't know what the terms of lease are, but if they're similar to those of a leasehold pub, the ground rent could be very high.

drummer_666

SalsaDanca wrote: »

I've been nosy and found the property on Rightmove. Are you aware that the hotel is leasehold? I don't know what the terms of lease are, but if they're similar to those of a leasehold pub, the ground rent could be very high.

hi, yes i know its leasehold and would enquire thoroughly before taking it seriously. I haven't looked into it in any detail yet, I wasn't even looking to buy another property yet, so it probably won't happen, just wanted some info and google didn't help

nobblyned

That's a business for sale, not a property.

Seemingly with an expired lease at that.

Fire_Fox

It's worth running an advanced search on here, the idea of buying commercial leasehold property for residential use has been discussed many times. You can't just convert leasehold properties, you'd need the consent of the freeholder. You likely could not sell the flats because you would be creating an underlease (subletting); anything under 80 years would be difficult for buyers to mortgage and you would not be able to offer lease extensions unless you had a lengthy head lease. "New lease to be negotiated" suggests that £25K is only a tiny part of the initial costs.

drummer_666

hmmm ok (as I said I haven't looked at the details of that particular hotel, it just sparked an idea)

What if its a freehold hotel and I wanted to convert that into flats? I guess it is always a gamble to whether you will get planning permission granted?

Fire_Fox

"Have an informal chat to the planning department at the council, how favourably they will view such a proposal varies with local policy." And again run an advanced search, you can apply for planning permission on properties you do not yet own.

eddddy

Just to put things in perspective, I think the hotel in question is available on a lease for a £25k premium plus £2k per month rent:

http://www.rightmove.co.uk/commercial-property-for-sale/property-20326593.html

Or it can be bought freehold for £1.2m :

http://www.rightmove.co.uk/commercial-property-for-sale/property-30965866.html


A bit of Googling showed up some other interesting info - they seem fairly desperate to sell the lease:

http://www.preferredcommercial.co.uk/blog/index.php/tag/the-dayspring-hotel-erdington/