Conversion of home into 2 flats

savingforoz

I live in a fairly large Victorian terrace and am considering splitting it into 2 flats, the ground floor one a 1 bedroom and the upper one a 2 bedroom. I would continue to live in the ground floor flat and rent out the top one.

My reasons are that I would like a rental property to provide extra income/increase my capital, but am bearish about the BTL scene right now and about property prices in general, so am reluctant to buy a separate BTL. In addition, my house would benefit from a new roof and a complete redecoration/revamp throughout. By doing things this way, I would get a rental property at just the cost of the refit/roof etc, get a nicely refurbished flat to live in (with that smart new kitchen I want), and the rental income would more than cover the loan repayments. In addition, I earn a decent wage so could repay the loan fairly quickly, and end up with two properties both mortgage free.

Has anyone done anything like this or can anyone think of any downside besides, of course, getting the right tenants in? Is the first step to talk to local estate agents to establish the rental market? I have already raised the issue with a builder who is doing some bits & pieces for me and he thanks that it would not present any great structural issues. I can see no reason why planning permission would be refused.

All ideas/comments gratefully received!

cells

firstly, planning permission is refused for all kinds of things, so that might stop you in your tracks


secondly, you need to consider the cost of the project.

thirdly, you need to consider the potential rental income as it is, the potential rental income once converted, the value of the property in its current state vs the value of the 2 properties minus costs once it is built


one other thing i might suggest. is if you don’t make them separate flats but rent out rooms ect. you can build the place up like it is 2 different properties but on paper try to keep it as one.

that way, you can offer the place out with council tax and tv licence included (but if u separate it out into 2 properties you will be paying 2x the council tax ect)

BobProperty

savingforoz wrote: »

..... I would get a rental property at just the cost of the refit/roof etc,.....

just the cost could = £50,000. To do this fully involves separate utility supplies, sound proofing, insulation, fire precautions etc.

Debt_Free_Chick

cells wrote: »

firstly, planning permission is refused for all kinds of things, so that might stop you in your tracks

Whilst that's a very point, most authorities have a policy of seeking to increase the number of residential dwellings, so this proposal might well be acceptable.

savingforoz - have you looked at the local authority's Local Development Framework to see their policy on creating new dwellings?

savingforoz

BobProperty wrote: »

just the cost could = £50,000. To do this fully involves separate utility supplies, sound proofing, insulation, fire precautions etc.

Yes, that's not far off the figure I had in mind. Seems a good price for a second property and fully refurbished premises!

savingforoz

Debt_Free_Chick wrote: »

Whilst that's a very point, most authorities have a policy of seeking to increase the number of residential dwellings, so this proposal might well be acceptable.

savingforoz - have you looked at the local authority's Local Development Framework to see their policy on creating new dwellings?

Will do, DFC - have looked at the Bristol City council wesbite ref planning permission, but it's not terribly helful - will check out the LDF thing (first I've heard of it).

TJ27

I've noticed several landlords in my area applying to convert their shared houses into self contained flats. (Possibly because they know they will not get HMO licences and therefore want to avoid it. But that's another story.)

Most have been refused.

Just because you increase the number of dwellings, it doesn't necessarily follow that you also increase the number of occupants. Often you will reduce the number of occupants. I would think that in general councils are more concerned about how many people are able to be housed, rather than how many dwellings are created.

Debt_Free_Chick

savingforoz wrote: »

will check out the LDF thing (first I've heard of it).

Chapter 8 here.

The relevant policy is H7 on page 9 of that PDF

"Conversion of houses to smaller units of self-contained accommodation will be permitted unless it adversely affects the character and amenity of the immediate locality."

So, your application is unlikely to be turned down, just because it's a conversion. Worth reading the rest of that PDF though.

TJ27

Oh, I forgot to mention that parking is often an issue.

A lot of properties here in Cardiff are Victorian terraces and parking is a big problem. Much of Bristol is similar I believe.

Unless you've got off road parking it could scupper you. Best thing to do is nip down the planning office and ask them I guess.

globalds

paul222 wrote: »

"Conversion of houses to smaller units of self-contained accommodation will be permitted unless it adversely affects the character and amenity of the immediate locality."

thats right -most application are turned down for similar reasons
it can be safety reason or it might be a conservation area/ listed building etc

4. No links in signatures No links of any kind, affiliate or not, are permitted in signatures,

Take the link out of your sig

Doozergirl

Once you get planning permission both flats will need to comply to current building regulations for new dwellings. You might have perfectly serviceable windows etc that need to be replaced to meet current regs.