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The former bank had a guide price of £100,000 and was spread over three floors. The building appeared to have been stripped back with some of the original bank’s characteristics still in place. The building was set over 3,500 square feet and came with a built-in safe and a vault. The building would require a change of use application being sent to the planning department and a creative plan to transform the space.
The former bank was purchased by business partners Adam and Paul who bought the property for £191,000.
Their plans were to develop the ground floor into serviced office space and extend and convert the upper floors into serviced apartments.
Adam said: “Upstairs, it depends on planning permission, but hopefully we’re going to get between eight and 10 flats.”
However, 15 months later in September 2019 their ambitious plans hit a “major planning hurdle”.
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Upstairs, Adam said they still had the planning permission for seven flats, however, this could cost them quite a bit of money.
Instead, they planned to build fewer flats for less money than their current plan.
The business partners already spent £30,000 on the two upper floors after gutting the interior and installing acoustic insulation between the commercial and residential parts of the building.
The ceiling had to be removed and put back up twice which not only took up time but cost them money too.
In June 2021, a local estate agent valued the former bank. He said: “From looking around the ground floor, you can see there’s a nice, flexible working layout that would appeal to various people.
“Upstairs is quite an interesting scenario in terms of what they can do with the spaces. One-bedroom to two-bedroom [flats] could offer quite nice living accommodation.”
Paul and Adam spent a total of £271,000 on the project but may spend a further £100,000 on developing four flats on the upper floors with a mixture of one-bedroom and two-bedroom flats.
Adam thinks this would be the most cost-effective way forward. The agent thinks the one-bedroom flats could sell for around £100,000 and the two-bedroom flats in a duplex style could sell for around £150,000 to £160,000.
Assuming there are two one-bedroom and two two-bedroom flats, the total sales value would equal £520,000.
The property pair envisage costs of around £100,000 to create the flats which has been added to their £271,000 spend so far. Then, factoring in the £170,000 sale of the ground floor, the pair could make a pre-tax profit of around £320,000.
Alternatively, Paul and Adam could rent out the flats. The agent thinks they could bring in a total of £3,400 per calendar month, which at full occupancy, would give them a yield of 20 percent.
Homes Under the Hammer is available to stream on BBC iPlayer.
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