sell the lot or build

eurofly

Hi,

I am trying to make a decision on what to do with my property. I have a detached bungalow in London and got planning permission to build a semi-detached onto the property. I am 54 and the planning permission runs out in 2019. I am working part-time self employed so don't really have enough of an income to show for borrowing although I could put the house and site up as collateral - don't know how to go about this as anything I have looked up they take into consideration your income and outgoings, dependants which I have one. I am a single parent and my home is mortgage free. The bungalow isn't in great repair and also has planning for a loft conversion and I would need a new roof to attach to the new build. It may be easier for me to sell the lot and buy another house. I like the area and am quite comfortable in my house and all the stamp duty costs etc of moving. Don't feel like selling the plot with planning as would be nervous that it would be outside of my control should they damage my existing house. If I did manage to built it I would have a pension fund. I haven't saved anything for my pension and opted out (was mis-sold that and there is practically nothing in it). Once I got it built I could airbnb or rent it out which would pay for the borrowing. Thank you very much for your thoughts

tacpot12

Is your home adjacent to the bungalow, or can you see the bungalow from your home?

anto164

If you enjoy living there but also want to release the potential money in the building works, how about spliting your plot, and selling yhenpart for the semi, alongside thenplanning permission? Would cost a few thiusand pounds, but could make a hole load more, allowing you to convert the roof and also modernise or redecorate as you wish, and allowing money for pension ( potentially)

eddddy

If you want to build the new semi yourself, that would be treated as a business venture and you would need 'development finance'.

That would be relatively expensive, and difficult to get, as you have no track record in development.

I'd suggest that you investigate the route of selling the plot to a developer, with a condition that the developer must convert your loft, build your new roof etc.

If you hire a good architect, they will make sure that the developer does the work on your house correctly, and does not damage your house.

And if you hire a good solicitor, they would look after all the details of the contract.

LandyAndy

eurofly wrote: »

hi,

i am trying to make a decision on what to do with my property. i have a detached bungalow in london and got planning permission to build a semi-detached onto the property.

tacpot12 wrote: »

is your home adjacent to the bungalow, or can you see the bungalow from your home?

. .

teneighty

As you say the existing bungalow "isn't in great repair" there might be more profit in developing the entire plot, maybe try to get planning permission to demolish the bungalow and build 2 or 3 houses. Then sell the entire plot to a developer.

You would have to do some research to see what might be possible and what the entire plot might be worth.

eurofly

Thanks for your advice much appreciated. Clarification for LA the bungalow is detached and I have planning to turn it into two semis i.e. I have split the plot as there was room to the side for another house which mirrors the existing and all of the houses around. It seems when it was built the semi just didn't get built but the space was left there. I was thinking to put it on auction as one lot and the developer could then make any alterations necessary. Just feel its a shame that I couldn't do it myself as its only a bungalow.