This case study is unusual because it consists of two parallel property projects working with Savoys Group to convert semi-commercial properties to residential use.
The investor already had three single residential buy-to-lets in his portfolio and was considering branching out to HMOs and was looking at a few options. He knew Sanjay Kumar from Savoys Group and wanted to work with Savoys to make his ideas a reality. As part of the Game Changer process, Savoys Group put him in touch with Karl at CPC Finance to look at financing options.
Property 1: Hairdressing salon with upstairs flat
The first property the client purchased was a hairdressing salon with an upstairs flat in Iver, Buckinghamshire. He purchased the property in February 2022 for £480,000. He remortgaged properties within his existing portfolio to finance the purchase with a 12-month short term refurbishment loan with Shawbrook Bank Ltd.
He used Savoys Group’s expertise to convert the hairdresser’s salon into a one-bedroom self-contained flat and the upstairs flat into a six-bedroom House of Multiple Occupancy. Each HMO bedroom had an en-suite bathroom. He secured planning permission after the purchase for the conversion works and a dormer extension to create an additional room upstairs in the loft, with a separate staircase. Securing the HMO license was straightforward and now the project is midway through the 6-8 month refurbishment works.
On completion, the property is expected to be worth £700,000 and the intention is to refinance onto a long-term buy-to-let loan. The investor expects to be able to bring in £1,933 monthly.
Property 2: Mobile phone shop with upstairs flat and separate garage
In March 2022, the investor bought a second property near Greenford in Ealing. Downstairs was a commercial establishment, a mobile phone shop, with an upstairs two-bedroom flat and a garage behind the main property. He bought the property for £555,000. He obtained the finance from remortgaging his existing property portfolio. Working with CPC Finance, he obtained a short-term refurbishment loan of £333,000 from Octane Capital Ltd to assist with the refurbishment works.
After conversion works, the property will consist of a self-contained flat downstairs, a five-bedroom HMO upstairs and a one-bedroom flat in the garage space. The anticipated total value is £1 million. Currently, the investor is waiting for planning permission to be able to start the refurbishment work. Once the conversion is finished, he is planning to refinance the property and let it out as a buy-to-let.
The investor explains the value that working with CPC Finance and Savoys Group brings to the Game Changer offering, “Savoys Group has been invaluable in this project. I would not have been able to do it without them. They do a lot of the upfront work in identifying the most suitable properties. Without them, it would have taken me a lot longer to research and find the right property to convert to an HMO. They make sure that the numbers add up and that it is a profitable venture for all involved. They also introduced me to CPC Finance and Ronald Fletcher Baker LLP, solicitor, which made it straightforward to obtain finance and process the paperwork.”