Freehold Purchase

Tower house is a truly unique conversion of a Victorian grade II listed building with the sea view (postcode is CT8 8NW.). The main building consists of 12 highest quality apartments. It is set in an acre of secure gated ground with allocated and guest parking, a cottage,  resident gym, Japanese garden, patio with Gazebo and BBQ facility and 16 car garage building.

 

Tower house units were created to the highest standard in order to offer opulent living life style, akin to living in a five star boutique hotel. It is a truly unique conversion and the only one of this style and standard in the UK,

 

Most visitors are impressed with the design and quality. A development loan manager of NatWest bank who has been lending money to developers in the South east of England for the last 30 years said, he has never seen anything like this conversion and he praised it as the most luxurious, unique and the highest quality he has seen. 

Tower House has won the International Property Awards 2020 for the Residential Redevelopment in Kent.

 

Although the interior design is that of a Victorian stately house, all units come with high specifications and modern facilities expected of a new conversion. Each unit has a hand beaten copper bath, cast iron bath and hand carved wash basins with 22 caret gold leaf finishes. The ornate plaster works are all hand sprayed or painted by specialist tradesmen which took many hours of love and attention. The heating is provided by individual gas boiler via cast iron radiators. Water is provided via three pumps to regulate the pressure to 3.5 bars throughout the site regardless of the number of taps open or the unit location. The units are individually metered for Gas, water and electricity.

 

The units will be ideal as luxurious boutique serviced accommodations or residential training/conference centre. It is also suitable as main or holiday homes. The ground floor apartments are suitable for commercial use as well.

If the purchaser is to use Tower house for serviced accommodation or other commercial use, there is a huge potential for the Capital allowance claim, as the building is newly converted. It is estimated to be more than 1.6 million pounds, subject to survey. This means the there will not be any corporation tax to pay until the profit exceeds the capital allowance agreed. For example, if 2 million pounds capital allowance is agreed, it is effectively purchasing the property at 6.1 million pounds, as the 2 million pounds can be written off against the future profit from the property. 

 

St Augustine's next door, which is a premier day venue  ( http://www.staugustineskent.com/ ) is very keen to use the accommodation offered by Tower House for their events. Their weakest point since they have opened in 1999 is the lack of accommodation as they cannot market the venue for residential events. 70 pounds per person per night is thought be achievable for short term let. Tower house can accommodate at least 76 people, more if lounge is used for sleeping. Tower house could host residential events too as there are large enough rooms for meetings/conferences/training etc. With a combination of corporate and private short term accommodation marketed through difference sources (St Augustine's, AirBnB, Booking.com etc), if 70% occupancy can be achieved, it will bring in 1.36 million pounds gross.  Assuming the cost of purchase is 8.5 million including the stamp duty, the gross yield at 16%

 

In 2019, St. Augustine's had the following events. 

 

72 weddings 

 

73 parties 

 

73 conferences

 

Tribute nights of 150 people are hosted once monthly or twice on others 

 

4 x Christmas party evenings all with 150 people in attendance each night. 

 

Many of the events could have used the accommodation. They can also sell new residential events if the buyer wishes to collaborate with St. Augustine's. They have often lost businesses due to lack of accommodation.

 

The unit summary,

 

UnitsBedsSqmPriice

15388£1,500,000

23214£800,000

3289£450,000

44136£626,000

53125£650,000

6284£400,000

7297£400,000

84140£600,000

93122£600,000

10275£350,000

113189£750,000

123234£1,000,000

Cottage269£425,000

 

Please note that flat 1 has a 250 sq garden, 16 cars garage (which could be converted into 3 further units or meeting rooms subject to permission)  and a private drive.

 

The price of the freehold is 300,000.

 

Total of 8,860,000 pounds, discounted to the guide price of 8,100,000 pounds as a bulk purchase.

 

Below are two apartments on sale at Westgate on sea now. 

 

https://www.zoopla.co.uk/new-homes/details/52396246?search_identifier=70098caea2c6fcec643117144a39d85b 

This apartment is at  9,247 pounds/sqm.

 

https://www.zoopla.co.uk/for-sale/details/53290683?search_identifier=70098caea2c6fcec643117144a39d85b 

This apartment is at  4,062 pounds/sqm.

 

The average pound/sqm at Tower house is 4,584 pounds. This excludes the land, communal area, the outbuildings and the freehold title. Although the two flats above are finished to a high standard, the build quality and the finishes are not even close to Tower house. From the two comparable, I believe the investor can see the property is competitively priced.

 

The article below, The 10 most 'up and coming' areas in Kent where house prices are soaring, shows Westgate on Sea at number 2.

 

https://www.kentlive.news/news/kent-news/10-most-up-coming-areas-3646579  

 

Of course, none of the properties area comparable to Tower house but the article indicates there is a strong capital growth in the area.

 

Capital allowance is expected to be between 20% to 30% of the purchase price. The agreed amount can be written off against the future profit made by using Tower House as a serviced accommodation/residential training center.

 

Stamp duty can be greatly reduced by using the multiple dwellings relief (at least by 500,000 pounds).  

 

At the time of completion, all of the apartments will be completed and signed off and 10 year building warranty are to be provided.

 

If you require further information, please do not hesitate to contact me. I look forward to hearing from you.

 

Best regards

 

Dr  Masayuki Otani