Existing blocks, taken in full.
We take standing assets in their entirety, including units vacant at completion. Structure and term are agreed per building. Letting risk transfers on the commencement date and remains with us for the duration.
Typically 6 to 60 units. Conversions of 3 to 6 units below.
The building as it stands.
Partially let stock is acceptable and priced accordingly. We are acquiring the operating obligation rather than an income stream, and vacant units in an otherwise sound building usually reflect pricing and placement rather than the asset itself.
- Every unit in the building, occupied or vacant at commencement
- Mixed unit sizes, which most authority placement lists require
- Buildings with tenants in situ, dealt with as part of the transfer
- Stock with a prolonged void history, subject to condition
- Conversions in progress, with commencement at practical completion
A house into three to six flats.
The most common asset we are shown, and the one where viability is settled at design stage. A conversion that performs well in the private rented market can be unsuitable for placement, and the determining variable is usually unit mix.
Mix over count
Four two beds place more readily than six studios in the same footprint. Authorities place households, and the acute shortages are at two and three bedroom. Maximising unit count against floor area reduces placement value.
Ground floor
Level access with a wet room commands a premium in placement terms. Accessible stock is the most acute shortage across every authority we supply and the hardest category to source at short notice.
Separate services
Individually metered utilities and separate entrances where the layout permits. Shared services alter the licensing position and introduce recharge disputes across the life of the tenancy.
Where a conversion is still in design, specification input is available at no cost and is materially cheaper than remedial work after sign-off. Covered in more detail on specifying a scheme to requirement.
Operational scope of the agreement.
- Letting and placement across every unit
- Tenancy management and rent collection
- Communal areas, cleaning and grounds maintenance
- Reactive and planned maintenance, including statutory repair
- Licensing applications and compliance certification
- Quarterly inspections, reported to the owner
Initial due diligence.
- Unit mix
- Sizes and quantities. The single largest determinant of placement value.
- Condition
- A works schedule where required, agreed and priced ahead of commencement.
- Compliance
- EPC, gas, electrical, fire risk assessment, and the applicable licensing regime.
- Access and services
- Entrances, metering arrangements, refuse and parking, each of which bears on placement.
- Title and consents
- Leasehold terms, subletting restrictions and freeholder consent where applicable.
A schedule and a postcode is sufficient to open.
Unit sizes, current occupancy and any known condition issues. We will revert with an indicative position.