Efforts to relocate Liverpool’s Stapely care home to the Childwall Synagogue site have fallen victim to the credit crunch.

A £3.5 million sale had been agreed for the 66-bed residential home in Sefton Park and planning permission granted for its redevelopment into flats. But with the completion date looming, the purchaser could not come up with the money.

The intention had been to put the proceeds towards the building of a £4 million three-storey care home in the car park at the rear of the shul.

Liverpool Housing Association chairman Alan Tinger said that having worked on the project for several years, “no one is more disappointed than I am at the turn of events. But the only realistic conclusion is the one that Stapely’s executive has come to.”

He would continue to work with Childwall’s executive and building committee “to consider any options that arise”.

Childwall chairman Norman Goldstone said essential repairs had been put off in anticipation of the redevelopment. “We simply cannot wait any longer to have the work done to put the building into the condition our members deserve.”

The 550-member shul needs repairs to its electrics, heating and seating. There are also problems with a leaking roof and damp. Childwall is to discuss the sale of the 1.3 acre car park, valued at £1.2 million, and refurbishment funding at its forthcoming annual meeting.

Meanwhile, Stapely will have to consider a renovation programme at its North Mossley Hill Road premises, one mile from Childwall. “I am sure the community will rally round and support Stapely through this period to improve the home for its residents,” Mr Tinger said.

Reflecting on “a severe setback”, Merseyside Jewish Representative Council president Gordon Globe maintained: “This was a realistic project pioneered by volunteers.

“Enormous time and effort was expended by dedicated voluntary workers and we should recognise their contributions.”