Which is more profitable? Selling house with planning permission or selling as building plot

ComicGeek

Surely the critical question is what the current dwelling would sell for as it is? 

The conversions would have costs involved - depending on the age of the property, this may need extensive insulation works and new windows etc to comply with building regs, as well as new heating systems, rewiring, new gas/water/elec/telecoms/drainage connections. Not to mention costs involved with internal replanning to get 2 semis to work, along with staircases, new window/door openings, new bathrooms, kitchens etc. It's not cheap!

So if the conversions cost £100k per semi, and the final sale price is £700k for both, then your current dwelling will probably be only worth £350-450k to a developer. Take off that what you have spent on planning costs etc, as well as legal/EA costs of selling, is it worth it? If you're also expecting to keep one, then I don't see why any developer would want to be involved - it happens on larger schemes where the developer can make enough profit, but not on a single semi.

111Penny123321

The house is on one level which has been formed by the original house then extensions.  It would be easy to split back into two.  The 'spare' semi would be sold as is with the new planning permission to extend and is already close to being a self contained unit.  I've estimated the conversion on our side at around £40,000 +/- 5%, the architect fees have already been catered for.  I agree a developer may not be interested but we know a few people privately who have already shown an interest in buying the original end of the house because of the land and out buildings.

GDB2222

Regardless of whether you will carry out the building work, you need to work out the cost of building each alternative. Then deduct that from the final values.