I’ve had a similar case (apart from the costs!). Assume costs exclude Care? The case I had the rent for HB was agreed at under 50% of these proposals but is still much higher than anything we have paid before.
If I’ve understood this right the developer is charging £154k to basically repurpose a couple of rooms but plans to make an additional nearly £200k profit by doing these refurbs?
I’m assuming the property is in a very expensive area but it would seem very unlike that the planned refurbs would increase the value (possible decrease value) so it would be useful to see valuations evidencing this.
I would look at SAA with a view to restrict or at least challenge costs. Make sure you see proposed plans/costing’s lease etc
regarding agreeing a rent in principal, it is common practice but no obligation on LA’s to do this and in this case I would be wary of doing so.
Hope that helps.
