How to convert townhouse into flats?
I have a townhouse in 3 levels. The ground level can be easily converted into a stand-alone flat with its own entrance.
I already have planning permission to install a 2nd kitchen on the ground floor and a bathroom is in place. The result of this would be a flat on the ground floor and a another flat on the upper levels.
How do I go about from here and until I end up with 2 flats and be able to sell one of them ? Has any body any experience doing this, what are the pitfalls and the costs involved (beyond the building costs) ?
Many thanks
Cristian
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Member Since March 2014 - Comments: 196 - Articles: 1
10:40 AM, 4th September 2015, About 11 years ago
Reply to the comment left by “Cristian Stoian” at “03/09/2015 – 19:42“:
Yes if you remove the second kitchen there shouldn’t be a problem
Member Since September 2015 - Comments: 7
2:27 PM, 5th September 2015, About 11 years ago
Have you worked out the costs involved even after building regs etc, I have converted many of these and it usually works out £20-£25k per unit once completed
Member Since June 2013 - Comments: 32
9:59 PM, 6th September 2015, About 11 years ago
Reply to the comment left by “ ” at “05/09/2015 – 14:27“:
No, I have not worked out this cost, so thanks for info.
In my case, it seems the project is not worth it, the main reason being the staircases are not in the right place hence an entire new flight of stairs (from ground to 2nd floor) has to be constructed which also means new partitioning on 2 levels, bathrooms redone, etc. It would be a lot of costs even before getting to the building regs you mention.
So cost is one aspect, but then it comes the final nail in the coffin which is the building will still not be considered ‘purpose build block of flats’ and the number of lenders available is very small, which of course it impacts the market value of the final units.
My back of the envelope calculation is this. Current market value of the townhouse about 800-850k. Theoretical market value of 3 units would be let’s say 1200k. Cost of development 100k-150k, so total cost say 1000k. Therefore theoretical profit 200k. Problem is the market value of the final units may be lower (see point above) + possible cost over-runs, we end up with a profit margin of around 10% (100k).
So all in all I am not convinced it is worth doing it.
Any views ?