Splitting house into flats?

SAMSONFIN13

Hi i have been thinking about converting the house i own into 2 flats, the house is worth in the region of £150000 and has a small mortgage left on it (£20,000)
If i get planning permission i guess i have to inform my mortgage provider and get there permission before i start any work?
I know its a bit of a vague question but is the bank likely to object to me converting as each flat would be worth about £110000 so the value of the building would be increased
Or would it be easier to just get a loan and pay off the mortgage then remortgage once the conversion had been done?

Slithery

SAMSONFIN13 wrote: »

Hi i have been thinking about converting the house i own into 2 flats, the house is worth in the region of £150000 and has a small mortgage left on it (£20,000)
If i get planning permission i guess i have to [STRIKE]inform my mortgage provider and[/STRIKE] get there permission before i start any work?
I know its a bit of a vague question but is the bank likely to object to me converting as each flat would be worth about £110000 so the value of the building would be increased

You are highly unlikely to get permission for this on a residential mortgage (I'm assuming you aren't planning to live in both properties when the conversion is complete).

Or would it be easier to just get a loan and pay off the mortgage then remortgage once the conversion had been done?

Yes, much easier.

davidmcn

SAMSONFIN13 wrote: »

is the bank likely to object to me converting as each flat would be worth about £110000 so the value of the building would be increased

Or you might run out of money halfway through, and leave the bank having to repossess and market a building site, worth less than the house currently is.

Doozergirl

You'll spend £60k converting them, near enough.

It isn't a case of whacking in a new front door some plasterboard partitions and an extra kitchen and bathroom. It has to meet building regulations involving fire resistance between units, has to meet requirements and be tested for noise transfer, insulation values in the walls, roof and windows need to be up to date, and safe escape routes need to be in place.

It needs new electrical and gas connections and two sets of complete rewiring and re-plumbing. Mortgage companies may well ask for 10 year warranties on the conversions.

It's work. A lot of it. Not worth it.

Mojisola

SAMSONFIN13 wrote: »

Hi i have been thinking about converting the house i own into 2 flats

Wouldn't you need permission from the council?

A neighbour of ours who wanted to do the same was stopped by our council.

Doozergirl

Mojisola wrote: »

Wouldn't you need permission from the council?

A neighbour of ours who wanted to do the same was stopped by our council.

The OP says 'if' they get planning permission. They know they need it.

AlexMac

I assume you've also had advice to confirm that 2 flats are worth more than a single house after taking all costs into account?

Friends of ours made tentative plans to do the same; til his son, who was an estate agent, pointed out that the project would actually devalue the asset!

SAMSONFIN13

Doozergirl wrote: »

You'll spend £60k converting them, near enough.

It isn't a case of whacking in a new front door some plasterboard partitions and an extra kitchen and bathroom. It has to meet building regulations involving fire resistance between units, has to meet requirements and be tested for noise transfer, insulation values in the walls, roof and windows need to be up to date, and safe escape routes need to be in place.

It needs new electrical and gas connections and two sets of complete rewiring and re-plumbing. Mortgage companies may well ask for 10 year warranties on the conversions.

It's work. A lot of it. Not worth it.

Hi i'm not new to renovating houses i just wanted advice on the mortgage side of things
I don't know where you get 60K from, maybe in London but not the Midlands!

I know it needs sound and fire insulation that's really not that big a job to do your self you just have to have the right materials and a friend wos a builder to help and advise
I have a friend with a window company and as its only a 2 storey terrace property with no bays or large windows so wont cost a lot, also as its only 2 storey the only escape route needed is a window that fully opens allowing people to climb out and escape

You can put "slave" meters in that just give a separate readings for the upstairs flat so no need for new connections

Just had a full rewire on a house i'm selling by my friend who's an electrician for £1500 so any electrical work is not a big deal
Personally i think i can get it done for 20k or under

eddddy

SAMSONFIN13 wrote: »

If i get planning permission i guess i have to inform my mortgage provider and get there permission before i start any work?

Your mortgage lender will consider this to be a commercial venture, and very high risk (in case you botch the conversion and/or run out of money half way through). So they won't allow it.