26-28, Elms Avenue comprises two Victorian Town Houses knocked into one situated in Eastbourne Town centre within a mix residential and guest house street. The property is currently run as a 15 person HMO for emergency accommodation for the local council. Planning has been granted to develop the property into 13 serviced accommodation apartments. Planning consent ref. no. P17/0754. The project is a JV between Lee Beecham and the current owner of the property, Shila Frewin. It will be held in a SPV called Heatherdene Apartments Ltd. Lee is buying out Shila's existing business partner & the initial loan of £255,000 will also pay off the existing mortgage of £105,000. The RICS valuer has estimated a current value of £410,000. The initial loan of £255,000 represents a LTV of 62%. A further £235,000 will be made available towards the cost of the conversion works and drawn on the verification of the Independent Monitoring Surveyors report. Once the works are complete the RICS valuer estimates a GDV of £770,000. The LTV at completion of the works will be 64%.
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