Specialist bridging finance lender Roma Finance has financed the £3.2m conversion of a family run nursing home into two luxury detached houses.
The applicant was a successful businessman having run the nursing home at the premises for more than 20 years.
With increasing regulation in the nursing home sector, the borrower’s business plan was to use his experienced nursing home staff as domiciliary care workers, visiting patients in their own homes, and as the property became vacant, converting it into two individual luxury detached houses.
The main part of the property was adjoined by a walkway to a large extension built in the 1980s, making the nursing home a substantial building. By removing the walkway between the two buildings, refurbishing the inside of each and creating separate access from the road with attractive landscaped gardens front and rear, the properties would be among the most desirable and modern in the area.
On initial inspection by the local planning department, the borrower had been able to get a positive pre-app that planning for the conversion would be granted.
Roma’s introducer had originally been working with another major bridging lender, but decisions weren’t happening quickly enough with restrictions put on the project that funds would have to be released in stages. This approach wasn’t necessary as there was sufficient equity in the property to enable funds to be released on day one thereby ensuring the conversion works would be completed as quickly as possible, once full planning had been granted. In stepped Roma Finance, who, after assessing the case and meeting the borrower face to face, offered the full £500,000 in one sum and the transaction was completed inside a week.
Roma Finance director Scott Marshall said: “With such a credible and experienced borrower who already owned the property for more than 20 years, it was clear from the outset that the business plan to change the focus of their care and to free up the magnificent property to convert it to maximise its potential on the open market, was viable and achievable.
“Being a local businessman, the borrower knew the property market well in that area and turning a large nursing home into two separate dwellings showed a high degree of commercial acumen with clear objectives, which could yield a profit of around £1m.”
The borrower commented: “I have taken bridging loans out for property transactions in the past, so I’m an experienced borrower. Roma Finance acted promptly and professionally throughout the whole loan process, with positive and focused contact. They were very straightforward to deal with and I always knew where things were up to. A pleasure to do business with.”