- Loan Purpose: Commercial-to-Residential conversion
- Loan Amount †: £619,000
- Loan Interest †: 10% per annum + bonuses
- Loan Term †: 12 months
- Loan Security †: First legal charge (RICS valuation supported)
- Loan Exit: Commercial re-finance
- Loan to value: 49%
- Minimum Investment: £250
Address: The Crosby Hotel, 75 Liverpool Road, Crosby, L23 5SE (google maps)
This substantial public house is steeped in history, set in the beautiful village of Crosby, Liverpool.
The property is currently presented across three floors with the public house being across the ground floor and two residential units across the first floor and second floor.
The majority of the property is in good condition although some rooms are in need of modernisation this will be dealt with during the property conversion.
The property is freehold and registered with the land registry under title number P179799.
The borrower has an agreement in place for a conditional exchange on the property, before completing the purchase. It has been agreed that during the exchange period, the borrower will gain planning permission to convert the property to residential.
Planning permission to convert the property from its current use as a public house (use Class A4), to residential dwellings (use Class C3) has now been sought and approved in April 2019.
The borrow is now looking to raise the monies to complete the purchase and convert the property to nine apartments.
The conversion work consists of sub-dividing the current commercial space in to nine self-contained spacious apartments, with the benefit of utilising the basement space as additional storage for each apartment.
Working closely with local estate agents the scheme has been designed to help the demand of starter homes with a mixture of one bed and two bedroomed apartments in a location that is known for expensive property.
The conversion involves no structural alterations and it is forecasted by the Contractor that it will take no longer than 9 months to complete the work, including having the work signed off by Sefton Council for Building Regulation purposes.
Given the location of the property and the local demand, the Borrower intends to market the apartments off plan for local residents to purchase and reside.
The borrower has also been preapproved for a remortgage and will let the properties out on a buy to let basis should they find sales take time.
Crosby is an affluent suburb of North Liverpool, with easy access to Liverpool city centre, and its beaches are home to “Another place”, the sculpture that was designed by internationally acclaimed artist Sir Anthony Gormley. This area also boasts splendid views of the sea, the Wirral and North Wales.
Crosby has seen a strong incline in housing prices over the last 5 years, totaling an average capital growth of 22%. This trend continued into 2019 as seen below: