I hope this gave you some insights into the costs associated with converting commerical to residential - let me know below YES or NO? Thanks for watching.
Thanks for your advice Stephen… I really appreciate it! Looking forward to the journey! Keep up the FAB videos-they are much appreciated! Thanks, Natasha
Thanks Stephen for that great advice, I am looking in to the best ways to get into commercial property therefore I'm looking for more great advice like this, thanks again.
Hi Stephen great video the run down of the numbers was very helpful! I have one question regarding these though, what is the loan for and how is the £2,472 value calculated? Eloise 😊
Hi Eloise there are two loans I refer to. One for bridging and the other is to refinance that bridging loan into a commercial loan. Where are you seeing £2,472?
Hi Stephen, the £2,472 is the amount you’ve said is needed to service the loan in the best case scenario. I think this is the serviceable amount you pay back each month for refinancing to a commercial loan? How did you calculate this? 😊
Can you do a video on commercial property you see in the right move app? It’s ambiguous, is it the business or property? Properties seem to cost 50k in Nottingham which seems unrealistic. I would like to start dipping my toes commercial projects, buy it in cash so I can go slowly through the process. What is the vanilla commercial property investment in the with a 200k budget? Thanks Stephen, love your channel
Hey Noble. Sure I’m happy to take ideas. From what I can understand, if the price is £50k in Nottingham, it probably is a business sale. They should say in the description or brochure, so double check that if you haven’t already.
Hi Stephen, watching this a year late. Super helpful! Making me thing commercial might be the way to go. Have you managed to agree this with card factory? would be interested to follow the progress if so.
Great video thank you. I saw a similar one elsewhere but Grade II listed and very cheap is it one to avoid because its listed? Do you do any training on Zoom? Thanks
At the moment interest rates are the highest they’ve been for ages. If you don’t need to continual loan then anytime is a good time, especially in a downward trending market. When interest rates start to drop, I would start looking for deals. But don’t let that stop you.
Thank you for this, Stephen. How did you calculate the architect+bridging+contingency? In the chart it shows 28.64% whilst if we add them (10%+0.85%+11%=21.85%) How did you obtain 26.673? Thank you
Hi Steven, Thanks for this great video- I had watched it months ago but found new value in watching it again after your recommendation:-) I have been advised that if I buy a commercial property (to use PD rights and convert to redo) as my 1st project, it will be more challenging to find a lender and higher rates for loans etc.. it will also be challenging to finance the deposit, stamp duty, architect and all other costs with my small budget. Would you advise doing a brrr with a vanilla buy to let before doing a commercial investment or an hmo? Thanks , Natasha
Hi Natasha, yes as your first deal with no experience I would find a buy to let that you can fix up and refinance. Then when you get some confidence and experience of doing that you can look at more advanced things around commercial pd rights.
Here is one thing I don't understand. If the property have seven year remaining. Why will you pay 300k for it if later it comeback to the original landlord isn't ?
Hi Juan. The property is bought freehold with a tenant in place who has a lease. When you buy this type of property you are the owner of it going forward.
Hi Stephen, very helpful video. Though I don't understand how the approx. 26k ( costs for Arch+Conting+ Brdging) isn't higher because of your 9 month lending at 0.85%
Hi @stabila64 thanks for your comment and watching my video. The cost of the conversion is £93,100. Bridging is 0.85% of £91k = £791 pcm * 9 month build time = £7,122. Add 11% Architect fee, 10% contigency = £26,673. Does that make sense now?
@@StephenDuncombetv Morning Stephen and of course - thanks. (Dont know what I was thinking). While I have your attention Stephen, can you clarify a 'shop and upper' P.D. requirement for me? Its about min. room size of the ancillary rooms above shop. Do they have to meet the 37sq/m requirement as on a ground floor conversion. I ask because I'm sure I've seen plans ( passed) of an upper conversion and the rooms well under that 37sq/m size. Thanks again for your time and videos. Very interesting to see you at work!
....sorry, obviously I'm talking about Class G regarding my query of room size about shop and when I mentioned the 37sq/m requirement for downstairs, I know its for the Class MA.
Hi yes minimum space standards are now 37m2 if you want to use pd rights. You can still go to full planning for a smaller size. Check the date on those plans you’re looking at or if they went for full planning permission.
Hi Stephen I have been trying to get my head around figures espcially in relation to GDV etc. I follow this video up to the costs and the price per sqft but then I get confused by where the price for the gr&ff comes from? Please can you clarify for me something that is probably very simple but has me confused.
Great video did you get a capital allowance survey done, pretty much gives you two years free income. Vat I believe should also only be charges at 5% which is a nice bonus
Hi Ashley no I did not get one. There was some capital allowances passed from the previous owner to me based on work they had done prior to leasing the property. But I’m interested to understand more about the survey so will look into that. Thanks for watching.
Microsoft or Google sheets 😀. Only joking. I’ll put a resources section on my website soon with that type of free stuff in it. Probably in May it should be live.
Hi Stephen, great content as always 👍 Just wondering, with a conversion of this type are you ever worried that you wouldn’t be able to mortgage the flats above the shops? If so what can you do to lower the risk of that happening? It’s just that I’m aware that some lenders aren’t keen on mortgaging properties on high streets, away from other residential properties, near takeaways etc
Hi Daniel, I’ve been looking at mortgages on buy to lets recently and yes flats above take away shops could be a concern. So I would avoid those. But flats above a shop, especially one that does not produce food or near those types of shops, I would still go for if the numbers make sense as lenders will still lend on it. In this example the flats would be above a card shop so it would be easy to get finance. Ask the properties in the area have flats above shops too across the street. This is another thing to check when looking at the area. Also check planning for similar projects in the street that you want to do that have been approved, as it means residential homes are in the same area if your not sure.
Hi Stephen, thank you for your reply, that makes total sense. I’ve had issues before with takeaways but good to know that shops are a lot less of an issue. Thanks again and I look forward to more great content
That's interesting as my understanding is not for commercial conversions which is the subject here. What pd rights are you aware of on commercial listed buildings?
@@alfiecroft2435 you still need listed building consent for class g but yeah you're right. Key thing is it will take more than 56 days for the listed building consent so kind of nullifies the pd right.
Hi Hakim, a lower yield increases the price as the constant is the income. So you divide the annual rent by the price to get the yield %. If you make the price higher the yield goes down. Try it out and work out how this works. This is how commercial properties are usually priced for investments.
![⭐ฮิตในTikTok!! ( หมูเด้ง MooDeng ) Ver. แดนซ์โจ๊ะๆ ReMix BY [ ดีเจกิต รีมิกซ์ ]](http://i.ytimg.com/vi/3krsyfWUeHU/mqdefault.jpg)
I hope this gave you some insights into the costs associated with converting commerical to residential - let me know below YES or NO? Thanks for watching.
Yes
Great video, thanks for posting!
oh Yes!
Thanks for your advice Stephen… I really appreciate it! Looking forward to the journey! Keep up the FAB videos-they are much appreciated! Thanks, Natasha
What did your actual numbers come out as. These were vague and fairly off the cuff. When it comes to what you actually paid is there a video on this.
Thanks Stephen for that great advice, I am looking in to the best ways to get into commercial property therefore I'm looking for more great advice like this, thanks again.
Really good insights and break down of the costs. Thank you.
Thanks @Nameless for the encouraging words.
Thanks for Sharing Stephen, It is very helpful ! 👍
Thanks Helen.
Great video Stephen, would you be happy to share a blank version of the spreadsheet?
Good ideas I’ll probably add things like that to a free download resources section on my website. I’ll probably do it next week sometime.
Hi Stephen great video the run down of the numbers was very helpful! I have one question regarding these though, what is the loan for and how is the £2,472 value calculated? Eloise 😊
Hi Eloise there are two loans I refer to. One for bridging and the other is to refinance that bridging loan into a commercial loan. Where are you seeing £2,472?
Hi Stephen, the £2,472 is the amount you’ve said is needed to service the loan in the best case scenario. I think this is the serviceable amount you pay back each month for refinancing to a commercial loan? How did you calculate this? 😊
so what was the actual results? what further issues did you encounter.? does the result match your spreadsheet?
Can you do a video on commercial property you see in the right move app? It’s ambiguous, is it the business or property? Properties seem to cost 50k in Nottingham which seems unrealistic. I would like to start dipping my toes commercial projects, buy it in cash so I can go slowly through the process. What is the vanilla commercial property investment in the with a 200k budget? Thanks Stephen, love your channel
Hey Noble. Sure I’m happy to take ideas. From what I can understand, if the price is £50k in Nottingham, it probably is a business sale.
They should say in the description or brochure, so double check that if you haven’t already.
Excellent explanation
Thanks I appreciate that.
Hi Stephen, watching this a year late. Super helpful! Making me thing commercial might be the way to go. Have you managed to agree this with card factory? would be interested to follow the progress if so.
Hi Max. Not yet I’ve been busy buying more commercial since I bought it. But when I do I’ll post updates on the channel.
Really useful video thanks
Thanks for watching.
Excellent video 👌🏾most informative information I've found on developing
Thanks Warren for the kind words.
Great video Stephen
Thanks Raphael. Pleased you liked it.
Great video thank you. I saw a similar one elsewhere but Grade II listed and very cheap is it one to avoid because its listed? Do you do any training on Zoom? Thanks
I avoid grade II. Yes I do mentoring. Email is in the about on TH-cam.
great videos, thank you. Is this a good time to invest in Commercial properties?
At the moment interest rates are the highest they’ve been for ages. If you don’t need to continual loan then anytime is a good time, especially in a downward trending market. When interest rates start to drop, I would start looking for deals. But don’t let that stop you.
Hi Stephen, great content! just what i was looking for, however, how did you arrive at the £134 price SQFT?
Hi Veryviral it the purchase price divided by the total sqft = £134. Pleased you liked it.
Thank you for this, Stephen. How did you calculate the architect+bridging+contingency? In the chart it shows 28.64% whilst if we add them (10%+0.85%+11%=21.85%) How did you obtain 26.673? Thank you
Hi Steven,
Thanks for this great video- I had watched it months ago but found new value in watching it again after your recommendation:-)
I have been advised that if I buy a commercial property (to use PD rights and convert to redo) as my 1st project, it will be more challenging to find a lender and higher rates for loans etc.. it will also be challenging to finance the deposit, stamp duty, architect and all other costs with my small budget. Would you advise doing a brrr with a vanilla buy to let before doing a commercial investment or an hmo?
Thanks , Natasha
Hi Natasha, yes as your first deal with no experience I would find a buy to let that you can fix up and refinance. Then when you get some confidence and experience of doing that you can look at more advanced things around commercial pd rights.
Thanks Stephen....nicely described and well presented
Thanks Steve. I appreciate the kind words and thanks for watching.
By the way do you have final numbers on this? How it went?
No yet Hakim, its rented for a while (6 years left) and I'm busy with a few other transactions which I will reveal later on my channel.
Wow. What is easiest type of commercial property to convert to res?
The one that gets permitted development rights.
Here is one thing I don't understand. If the property have seven year remaining. Why will you pay 300k for it if later it comeback to the original landlord isn't ?
Hi Juan. The property is bought freehold with a tenant in place who has a lease. When you buy this type of property you are the owner of it going forward.
Love your video one of the thanks for info God bless you
Thanks Suki for the kind words. I appreciate it.
Hi Stephen, do you make sure the EPC rating can be a C or higher?
Hi Stephen, very helpful video. Though I don't understand how the approx. 26k ( costs for Arch+Conting+ Brdging) isn't higher because of your 9 month lending at 0.85%
Hi @stabila64 thanks for your comment and watching my video. The cost of the conversion is £93,100. Bridging is 0.85% of £91k = £791 pcm * 9 month build time = £7,122. Add 11% Architect fee, 10% contigency = £26,673. Does that make sense now?
@@StephenDuncombetv Morning Stephen and of course - thanks. (Dont know what I was thinking). While I have your attention Stephen, can you clarify a 'shop and upper' P.D. requirement for me? Its about min. room size of the ancillary rooms above shop. Do they have to meet the 37sq/m requirement as on a ground floor conversion. I ask because I'm sure I've seen plans ( passed) of an upper conversion and the rooms well under that 37sq/m size. Thanks again for your time and videos. Very interesting to see you at work!
....sorry, obviously I'm talking about Class G regarding my query of room size about shop and when I mentioned the 37sq/m requirement for downstairs, I know its for the Class MA.
Hi yes minimum space standards are now 37m2 if you want to use pd rights. You can still go to full planning for a smaller size. Check the date on those plans you’re looking at or if they went for full planning permission.
@@StephenDuncombetv ahh right, doing a full P.P. ( rather than P.D.) application would allow you to plan for smaller sizes then. Thanks again Stephen!
Hi Stephen I have been trying to get my head around figures espcially in relation to GDV etc. I follow this video up to the costs and the price per sqft but then I get confused by where the price for the gr&ff comes from? Please can you clarify for me something that is probably very simple but has me confused.
Great video did you get a capital allowance survey done, pretty much gives you two years free income. Vat I believe should also only be charges at 5% which is a nice bonus
Hi Ashley no I did not get one. There was some capital allowances passed from the previous owner to me based on work they had done prior to leasing the property. But I’m interested to understand more about the survey so will look into that. Thanks for watching.
Oood music!
Hi Steven, we're can I get this Excel sheet format to put all these numbers in ?
Microsoft or Google sheets 😀. Only joking. I’ll put a resources section on my website soon with that type of free stuff in it. Probably in May it should be live.
@Stephen Duncombe that would be awesome it would defo help 👍🏽
Very informative videos but the music is so grating!
Hi Stephen, great content as always 👍
Just wondering, with a conversion of this type are you ever worried that you wouldn’t be able to mortgage the flats above the shops?
If so what can you do to lower the risk of that happening?
It’s just that I’m aware that some lenders aren’t keen on mortgaging properties on high streets, away from other residential properties, near takeaways etc
Hi Daniel, I’ve been looking at mortgages on buy to lets recently and yes flats above take away shops could be a concern. So I would avoid those. But flats above a shop, especially one that does not produce food or near those types of shops, I would still go for if the numbers make sense as lenders will still lend on it. In this example the flats would be above a card shop so it would be easy to get finance. Ask the properties in the area have flats above shops too across the street. This is another thing to check when looking at the area. Also check planning for similar projects in the street that you want to do that have been approved, as it means residential homes are in the same area if your not sure.
Hi Stephen, thank you for your reply, that makes total sense. I’ve had issues before with takeaways but good to know that shops are a lot less of an issue.
Thanks again and I look forward to more great content
You can do some permitted development on a listed building
That's interesting as my understanding is not for commercial conversions which is the subject here. What pd rights are you aware of on commercial listed buildings?
@@StephenDuncombetv you're able to do class G in a listed building, if this building was listed then you could have done what you were planning on it
@@alfiecroft2435 you still need listed building consent for class g but yeah you're right. Key thing is it will take more than 56 days for the listed building consent so kind of nullifies the pd right.
Thanks
I didn’t understand why as the yield went down.. the value went up?
Hi Hakim, a lower yield increases the price as the constant is the income. So you divide the annual rent by the price to get the yield %. If you make the price higher the yield goes down. Try it out and work out how this works. This is how commercial properties are usually priced for investments.
Stephen, I love this content and looking to do something very similar. I'm going to find you on IG and drop you a message (Y)
Thanks for the positive feedback.