LendInvest’s £2.6m Cleethorpes Redevelopment: What London Landlords Need to Know

Overview of the Cleethorpes Redevelopment

LendInvest has funded a £2.584 million project converting a former primary school and nursery in Cleethorpes, Lincolnshire, into 19 homes—17 mews houses and 2 bungalows. The development includes parking and communal amenities, demonstrating the increasing trend of adaptive reuse to boost housing supply. Though outside London, the project offers valuable insights for landlords here, especially those working with SME developers or exploring conversions of non-residential buildings.

Why This Matters to London Landlords

The scheme underscores rising lender support for SME developers who prioritise repurposing existing buildings instead of costly, slower new builds. For London landlords, this opens up greater opportunities to invest in or collaborate on redevelopment projects addressing housing demand.

However, redevelopments bring complex compliance obligations. Converted homes must meet up-to-date building safety, fire safety, and energy performance standards. Non-compliance risks enforcement action and costly remedial work.

Practical Compliance Considerations

• Building Safety and Fire Regulations: Ensure all units meet the latest fire safety measures, including alarms, emergency exits, and compliant materials. The 2023 fire safety updates post-Grenfell necessitate thorough audits.

• Energy Performance Certificates (EPCs): Obtain valid EPC ratings for each dwelling early, as they influence tenancy agreements and marketing.

• Communal Areas Management: Maintain detailed records for safety checks and maintenance of shared spaces like parking and communal amenities.

• Tenant and Landlord Notifications: Inform tenants promptly about any redevelopment-related changes impacting access, communal areas, or tenancy terms.

Tailoring Actions to Landlord Profiles

• Single-Unit Landlords: Scrutinise compliance certificates and budget refurbishment costs carefully when purchasing or redeveloping.

• HMO Operators: Heightened communal safety obligations require fire compliance and tenancy updates reflecting shared spaces.

• Portfolio Landlords: Use robust compliance tracking and coordinate closely with developers to secure timely documentation.

• Accidental Landlords: If acquiring recently converted units, commission compliance audits to verify all regulatory standards.

Financing and Operational Next Steps

• Explore Financing Options: LendInvest’s involvement signals growing access to bridging loans and development finance for conversions.

• Update Tenancy Agreements: Reflect any property layout or communal use changes to mitigate disputes.

• Coordinate Timelines: Engage proactively with developers and agents to ensure smooth handovers and paperwork completion.

• Implement Compliance Workflows: Set reminders for annual safety inspections, EPC renewals, and communal upkeep.

How Rentals & Sales Can Support You

Our expertise includes portfolio reviews focused on redevelopment properties, post-conversion compliance audits, tenancy agreement updates, and pricing strategies that optimise rental income.

Compliance Disclaimer

This article provides general information and is not legal advice. Landlords should consult qualified professionals to ensure full regulatory compliance.