How to purchase a dark unused basement

UltraCheap_2

Hi

I would like to purchase an old, dark, unused basement (under a block of flats) and make it into a flat. Not my dream home, but I have to start somewhere. I found one that would work in a leasehold building. Can anyone advise on how I should proceed with this? I am weary of asking an estate agent to help me because they may pass the information over to one of their developer friends, and then I may find myself bidding against someone for something that no wanted until I pointed it out...

I have the name and address of the freeholder. I was thinking that I would send them a letter stating that I am interested, and ask if they would like to meet in person to discuss how much they would sell the space for.

I really don't know how much the space is worth, I wouldn't want to pay more than £50k for the space, which is approximately 475 square feet (based on my measurements). However, because this is central London, I may find that they want £150k for the space. Mind you, flats this same size in the building (located above ground with windows and light!) go for approximately £170k. The space I am looking at is below ground, dark, will require windows to be added, and would likely prove to be expensive, but I hope more affordable then purchasing a space above ground. How do I determine the real value of this unused space?

If the freeholder accepts my offer, then what do I do next? If they accept the £50k offer, then I wont require a mortgage, so what do I do next? Do I need a solicitor, can I do all of this myself?

Your help and advice on this would be very very appreciated.

Many thanks!

Raggie

contact the freeholder and see what they say.. at wost it will only be a "no"

"Edited 'cos re read your original post.. ohpssss"

UltraCheap_2

Thanks, you reminded me that I forgot a few questions...

how would I determine the actual value of the space?

what do I do if the freeholder accepts my offer of £50k (I wont require a mortgage at this amount). do I need a solicitor, or can I do all the paperwork myself?

Gem_

You do need to concider the planning permission aspect - I presume this space is not listed as a separate dwelling at the moment?

There is always the chance that you wont get permission and 50 grand is a lot to spend on a dark hole

G

cattie

If you haven't done so already, wouldn't it be wise to check if you would be likely to get planning permission before even thinking of making an offer?

Also there is possibly a chance of the freeholder deciding he could develop this space himself when he knows your idea is to convert it into a flat. Don't forget if you are able to buy the space it will be leasehold & you will need the freeholder's permission to carry out any such conversion, so you won't be able to keep him in the dark about your intentions.

UltraCheap_2

Gem_ wrote:

You do need to concider the planning permission aspect - I presume this space is not listed as a separate dwelling at the moment?

There is always the chance that you wont get permission and 50 grand is a lot to spend on a dark hole

G

That's correct, the space is not listed as a separate dwelling at the moment. I suppose it would be good to find out if the Freeholder is interested in selling the space, and then strike a deal which is contingent on planning permission. How would I go about obtaining planning permission, and how much time and money should I allocate to obtain planning permission?

Perhaps I will become a FTB&B (First Time Buyer and Builder!)

Thanks a lot for your advice on this.

UltraCheap_2

cattie wrote:

If you haven't done so already, wouldn't it be wise to check if you would be likely to get planning permission before even thinking of making an offer?

Also there is possibly a chance of the freeholder deciding he could develop this space himself when he knows your idea is to convert it into a flat. Don't forget if you are able to buy the space it will be leasehold & you will need the freeholder's permission to carry out any such conversion, so you won't be able to keep him in the dark about your intentions.

I was planning to tell the Freeholder my intentions to make the space into a flat, but you have brought up some very good points. I would need to include in the purchase a legal agreement that specifically states that I can convert the space into a flat, and that outlines the leasehold agreement for a specified duration (seems to be around 100 years for leasehold?)

Would I need an Estate Agent to finalize this documentation, or could I just go through a solicitor?

The basement space isn't brilliant, but if the Freeholder decides to develop the space based on my interest, then I will just need to move on and find another; it will all be a learning experience.

Debt_Free_Chick

Before you contact the Freeholder, contact the Planning Officer at the local authority i.e. the one local to the building.

Talk to the Planning Officer about what might be approved, in terms of conversion. They will tell you whether it's "possible" or a "no-go". If it's a no-go, then forget about it.

If it's "possible" then talk to the freeholder.

Bear in mind that if it's possible, then the freeholder will want you to pay for the current value of the basement, plus some extra to reflect what it will be worth, once the conversion is complete. Otherwise, he would just convert it himself and get some profit that way.

Speak to the Planning Officer first.