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Turning hotel into flats - planning permission etc
Comments
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1: Acquire floor plans from the agent.
2: Decide what layouts there are
3: Ascribe values to those
4: Deduct the purchase price
The difference is the gross profit from which you deduct all the funding construction and disposal costs, oh and tax....
On the never wrong rule of thumb
let's say 12 units that means an average of £185/200k per unit.
If you want to clear 10%, then that leaves say £70k per unit to meet the costs above.
None of this is of course advice, it's the rule of thumb and gives you a point to start with.
Then you arrange to visit the local authority or take advice from your paid advisor.Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0 -
thanks, I won't be buying this one. Was just seeing it pop up whilst looking at the market made me wonder about the possibility for my next project.
thanks property man something useful to start with when I'm close to getting this property on the market!
altho up here you'd get closer to £150 per unit. I still don't get why people pay so much more for a flat than a bigger house!0 -
It makes no sense at all as an hotel, based on £80k turnover and a purchase price for the freehold of £1.2m. OTOH, £80k is only an average of £13 per room per night, so I imagine there is scope to increase the turnover.No reliance should be placed on the above! Absolutely none, do you hear?0
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It makes no sense at all as an hotel, based on £80k turnover and a purchase price for the freehold of £1.2m. OTOH, £80k is only an average of £13 per room per night, so I imagine there is scope to increase the turnover.
Maybe the owner ideally wants to sell it for £1.2m to a developer for conversion into flats, or similar.
But as the market is depressed atm, they might offer a short lease for a few years for £25k, then have another go at selling it for £1.2m to a developer when the short lease ends.
Who knows?0 -
Who'd want to take this on with a short lease, though? You'd have to work really hard to build up the turnover, then be out on your ear. My guess is that the owners have got fed up with running it but have not yet got realistic ideas about what it's worth. As you say, who knows?No reliance should be placed on the above! Absolutely none, do you hear?0
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It makes no sense at all as an hotel, based on £80k turnover and a purchase price for the freehold of £1.2m. OTOH, £80k is only an average of £13 per room per night, so I imagine there is scope to increase the turnover.
"The hotel is run at a pace to suit the current owner and ran by 1 full time and 2 part time staff.The advised annual turnover is £80,000pa the business does not currently trade all year round giving scope to increase turnover further."
http://www.rightmove.co.uk/commercial-property-for-sale/property-30965866.htmlDeclutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0 -
"The hotel is run at a pace to suit the current owner and ran by 1 full time and 2 part time staff.The advised annual turnover is £80,000pa the business does not currently trade all year round giving scope to increase turnover further."
http://www.rightmove.co.uk/commercial-property-for-sale/property-30965866.html
I guess that it depends which RM advert you want to believe. There is also this completely contradictory statement " The business operates all year round generating a turnover in the region of £80,000 per annum with a gross profit of 70%. " :rotfl:
http://www.rightmove.co.uk/commercial-property-for-sale/property-20326593.htmlNo reliance should be placed on the above! Absolutely none, do you hear?0 -
According to tripadvisor it is not the best rated out there !"There's no such thing as Macra. Macra do not exist."
"I could play all day in my Green Cathedral".
"The Centuries that divide me shall be undone."
"A dream? Really, Doctor. You'll be consulting the entrails of a sheep next. "0
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