13/11/2019
CONVERTING HOUSES TO FLATS
There can be great opportunities sometimes for dividing houses, particularly larger houses to flats:
* Existing house too big to sell to one family
* Price of the house or land high and profit is in sub-division
* Demand in the local area for smaller units
* Good size plot with room for extra units, parking etc
However, there are some general PLANNING and COMMERCIAL points to be aware of before going too far ahead with such projects and putting too much money into them:
* IS THE HOUSE BIG ENOUGH? This is not just a design feasibility question. Some Councils will not allow conversion below a certain size of house (e.g. 2 bedrooms or 150 sqm), or will not allow the loss of 3-bedroom homes for families. CHECK LOCAL POLICIES FIRST.
* AM I IN THE RIGHT AREA? This is more than a case of looking to see what your flats might sell for. The Council will want there to be examples of other flats (purpose-built or converted) in the area, so that there is a good mix, but not so many that there are not enough homes for families.
* WILL PARKING BE A PROBLEM? Issues like parking, additional comings and goings and waste collection are concerns for neighbours, who will notice a difference with more units. Some areas benefit from good public transport links and initial high level advice should almost always be sought from an experienced TRANSPORT PLANNING CONSULTANT first.
* IS IT COMMERCIALLY VIABLE? In some cases, trying to make the numbers stack means going into the roof space. This could cost a lot of money in possible structural changes and replacing the roof. Rooms in loft space often have a lower value per square foot and you might not add as much by way of profit as you think you might. COST CAREFULLY and seek ADVICE FROM LOCAL AGENTS on your layouts.
* AFFORDABLE HOUSING RELEVANT? Nationally, the threshold for making any AH contributions is 10 new units or more. However, in London and other parts of the South East, more Councils are seeking AH contributions below this (this is not necessarily unlawful), and you may have to consider this issue as part of the risk in your deal. This area is extremely complex and EXPERT PLANNING ADVICE should be sought.
There may be other costs and issues, such amenity and garden space, CIL and SPA contributions and impact on neighbours. The planning process takes time and expert advice should be sought on HOW to approach the planners, WHAT to prepare in advance of seeing them and TIMESCALE.
We often carry out INTIAL PLANNING APPRAISALS for clients and help guide them through pre-app and planning stages so that they:
* Make money from their schemes
* Deliver successfully on investorsâ and partnersâ expectations
* Successfully manage their reputation and key relationships
Failing to plan is planning to fail!
So email or PM me if you have a scheme for conversion and want to know how we can help you.
David Kemp
[email protected]