Semi detached house - build a new house on the side?

planning_officer

This purely depends on the local planning policies in your area - may be fine in principle; it may not be. The best place to look is your local Council's Development Plan - which will be on their website. It would be worth doing a pre-application enquiry but, contrary to some of the posts above, the Council may well charge for this - it may well not be free. But it would still be considerably less than applying for planning permission.

casgup

Overwhelmed by your very helpful responses, so firstly let me thank you all.

I wouldn't be joining on another house, there is enough room to put a detached house on the land so would not be turning my existing property into a terraced house.

I am going to speak to the council and see if I can pay for someone to advise us. It seems like an opportunity which we would have to explore more to see if it would be beneficial to us in the long run to pursue.

Once again, thank you all for yor input. It's been extremely helpful.

jaylee3

casgup wrote: »

Overwhelmed by your very helpful responses, so firstly let me thank you all.

I wouldn't be joining on another house, there is enough room to put a detached house on the land so would not be turning my existing property into a terraced house.

I am going to speak to the council and see if I can pay for someone to advise us. It seems like an opportunity which we would have to explore more to see if it would be beneficial to us in the long run to pursue.

Once again, thank you all for your input. It's been extremely helpful.

But you did say the house would be a 4 bed, 2 bath; implying it would be all one house....sort of.... or an extra house added onto yours......That's why everyone was saying yours would be a mid terrace and the extra house and your neighbour's house end terrace.

I guess there is nothing to stop you building on your extra land, but it's very likely (even if you get planning permission,) that you won't make HALF as much money as you are expecting to.

What makes you think you will make £340K? Are you actually taking into account the building costs of the add-on?!

And what do you mean 'a single out the back?' A single what?

Your posts are a bit confusing.

flea72

I think OP was originally going to extend his house with a side and rear extension to get the 4 bed he wants. Hes now thinking about foregoing that and not extending his, but build a separate house on the land to the side. Sell his current house and the new-build and move to another house with the proceeds

flea72

I agree, his profit calculations dont allow for costs, but tbh if his current house is valued at 340k, it wont cost anywhere near that to build a 2-bed, seeing as the biggest cost would be the land and he already owns that.

jaylee3

But he's not going to make anything from the house he has just moved into, as he has only just moved in, and will probably take a loss, with taking into account estate agent fees, stamp duty, legal costs, moving costs etc, and it's not going to have increased in value so soon, and it may never do so. Not for 10-15 years anyway.

Also, there is no guarantee that an extra bedroom and extra bathroom added on is going to increase the property value by any more than it takes to build the extension IYSWIM.

And a 2 bed detached house built in the garden of a row of 3 terraced houses? Can't see 1000s of people rushing to buy that TBH. And as I said, they have to take into account all the costs of building it. I think they'll be lucky to break even.

And land isn't always massively valuable or expensive. Depends where it is...

pleasedelete

Even if building on land need to get mortgage agreement as the original house on which there is a mortgage will be worth less. The loan to value will change which may affect the rate or if there is not enough equity they may so no.

You will then have to have enough income to raise a further mortgage to build. Often this is done by remortgaging the original house.

So remortgage original house to raise money to build (guess £150,000 plus ). Sell 2nd home- pay off some mortgage. Do you have enough equity to do this.

I would think as a rough guide

£340,000 house- maybe now worth £300,000 less garden. Need £150,000 plus to build (guess). Loan to value for a remortgage would need to be 75-80%- so worse case £225,000 maximum mortgage on your current house . So you would need to have a mortgage now of less than £75,000. Do you?

If you are currently mortgage free , or have a low mortgage , or have a high income then there is a some viability in the plan.

You could get a specialist mortgage to build if you have a high enough income which you would settle when you sell the 2nd house.

You could sell the plot (again need mortgage permission and they may make you remortgage at a different rate etc). It would need to fetch enough to offset the loss in the value of your property.

flea72

jaylee3 wrote: »

And a 2 bed detached house built in the garden of a row of 3 terraced houses? Can't see 1000s of people rushing to buy that TBH. And as I said, they have to take into account all the costs of building it. I think they'll be lucky to break even.

And land isn't always massively valuable or expensive. Depends where it is...

The OPs house is semi- detached. They have already confirmed they are not looking to create a terraced row. The new-build will be detached

As long as the site warrants it, a 2bed detached will have a similar value to a 3-bed semi, in most areas

If the OP bought a 3-bed semi for £340, then there is value in the land. The land will have a higher value, than the drop in value of his current house, from having a smaller garden. As a semi, due to it being a corner plot, if he just loses the side garden, his rear garden should still be similar size to his neighbour. A prospective purchaser, would be unware of the loss in land, that the price would reflect. Buyers tend to base offers on land registry figures, so if the value has dropped they would think they were getting a bargain, not that they had lost a considerable chunk of land

I doubt the Op thinks he will be making money onthe sale of his current house, all the profit will come from the new-build. £340 is prob stretching, but after fees and build costs, £150k would be a minimum amount to expect.

The main concern for OP will be funding the project. As very few mortgage lenders release funds until certain stages of build. For ease, most people just sell the land to a developer.

ManofLeisure_2

Sorry, but I'm also a little confused about what you would like to build.
However, as an Architect I would say that any planned development would be dependent upon the impact it would have on your neighbourhood.
In your first post you say that you have already spoken with Architects, so perhaps you could return to them and explore your options further. They will have contacts in the local planning office and will know what is likely to be permitted.

Good Luck

GoldenShadow

Not overly helpful but a plot is being advertised for this near me:

http://www.rightmove.co.uk/property-for-sale/property-44199455.html