May Mastermind highlights
Our second members mastermind event took place on the 20th May. The event kicked off with an introduction from the Supported Living Gateway founders on their brand-new development in Devon. The case study was followed by an update on the finance market from Signature Finance and a presentation on capital allowances with Usman Nazir. Here are some key highlights from the event.
Northbank House Gateway case study
Rich and Russ took us through this exciting new development which is soon to be started by the founders of Supported Living Gateway. Northbank House is in north Devon and is a commercial premises with a job centre on the ground floor, and two vacant upper floors. The Gateway founders will be updating members each month on progress of the project.
The building is local to Lisa who knows that there is a shortage of supported living accommodation in the local area. There is an existing government lease on the ground floor which is for 10 years, and has been newly renewed. After having a look around Lisa realised it would be very easy to use permitted development to change the second and third floors into around 15 self-contained apartments.
The team don’t have any assurances in place (from supported living providers) but there is high demand in the area and they are confident the development would make a good private rental if they don’t get a supported living lease in place.
Update from Paul at Signature Finance
Signature Finance have a monthly slot on our mastermind and Paul highlighted a couple of hot topics in relation to supported living finance over the past month. Overall the market has been surprisingly buoyant. A common problem related to the use of HMO’s for supported living purposes when a live in carer is needed as this can change the use to commercial and therefore reduce the number of finance options available.
Capital allowances with Usman Nazir from James Nazir & Co
Usman Nazir took us through capital allowances and how they can be beneficial to supported living property owners. Capital allowances are a tax break that look at the fit out of a commercial property (everything other than the bricks and mortar so the services, gas, carpet, vinyl, laminate, kitchens, ventilation, wiring etc). A valuation is formed based on the replacement value of those items. So if you bought an office for £1 million and a site inspection valued £350k in replacement cost of the fit out, that amount can be off-set against your tax (£66,500 tax relief for a 19% tax payer). In some cases two claims can be made, one based on the fit-out on purchase and another based on what is spent on the refurbishment.
Our masterminds are members only events that take place on the third Thursday of every month. They are peer to peer sharing sessions that provide specialist updates and education for property developers who are interested in supported living. To see all investor member benefits click here.