What should I do ?

[bren whelan]

I own a Freehold pub in S E London . It's mortgage free and well sited in Zone 2 ,a few doors from a Tube Station .
Over 1,000 sq ft of building and same of garden .
As this trade is declining I consider options !
To sell ,of course is one. Also develop into flats .Or change nature of business.?
All suggestions would be helpful.
Thanks

 

[lookinginvest]

Without knowing the detailed economy of the region it is difficult to say what options you should consider. However, when you bear in mind demand for flats in London, and the fact you are next to a tube station, might this be an option worth considering? You would need a detailed cost analysis for any option you took further.

 

[bren whelan]

Without knowing the detailed economy of the region it is difficult to say what options you should consider. However, when you bear in mind demand for flats in London, and the fact you are next to a tube station, might this be an option worth considering? You would need a detailed cost analysis for any option you took further.

Thanks for that. I considered a Joint Venture a few years back but they wanted in excess of 50 per cent of the outcome.
If it could become six flats then I would expect three

 

[PostBrexitInvestor]

I think it is probably best to work backwards, work out what kind of return you are after and then estimate the return on the various options available. This should at least give you a starting point from which to begin negotiations.

 

[Nicholas Wallwork]

Hi @bren whelan

I would start with getting a good architect round and seeing what conversions options there are for the site.

Here are a few possibilities:
- convert existing building
- knock it down and build on the whole plot
- sell the site with just planning and let a developer do the build...

So I'd suggest speak to an architect and/or planning consultant. Then when you know what might be possible you can speak to local agents about what the flats will sell for and work out potential profits once build costs are considered (and architect will probably give you some ball park numbers there).

I suggest go for planning on a scheme for minimal investment on your own. If successful then either build it out yourself, sell on the plot or do a JV with a developer.

Good luck and keep us posted with how it goes or any other advice you might need...