Originally posted by threaded
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£250k dead is in 1% band !? -
mmmm ok some comments from someone who's been there and done that...
Planning permission can take up to 3 months, then may be refused. I'm no on an appeal to have my 6 bed house in Bromley converted into 2 flats, so far its taken 18 months.......
Conversions costs, with all the T&Cs from H&S will be more than 25k per flat, and with that are you looking to add all the finishing touches, expenses bathrooms, kitchens etc.
I'm looking at a conversion cost of about 40k per flat.
Then you have to look at what else there is on the market, parking, is there room for 4 flats, Bromley tell me they want 1.5 spaces per flat, off road, can you do that ??
You need to engage an architect, to do plans, three types will be needed and then submitted to the council, this will cost iro £1500 and you also need to engage a builder to give you an estimate of costs, for you sums, then get 4 more for comparison reasons.
Then consider the cost for splitting services, gas, electricity, water (will the water company want meters installed, splitting the electricity is costing me £1500 for two flats.)
what are you doing about outside space how are you considering splitting it.
Have you considered selling two of the flats to recoup some off your costs, but keep the freehold, so you have so residual value that you can call on in say 25 years....
there is lots and lots more to consider........if you want more info let me know....SA says;
Well you looked so stylish I thought you batted for the other camp - thats like the ultimate compliment!
I couldn't imagine you ever having a hair out of place!
n5gooner is awarded +5 Xeno Geek Points.(whatever these are)Comment
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this is a funny thread, can't wait for Kramer to reply
is Kramer a relation of El_Duder ?
Milan.Comment
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well you can't blame a lad for trying...Originally posted by milanbenes
gooner - its a bit of a shocker that its taking 18 months for the conversion..
I guess i am a bit naive when it comes to this but i'm not gonna figure it out unless i ask the questions and have a go.
the finish on the flats will be adequate but the estimates were totally off the top of my head based on work around my house and people i know...
I'm not sorting oak floor and banisters thats for sure...
I think i definitely need to speak to planning office and a couple of builders but hey... its early days yet ..
This could be the adventure i need right now...--------------------------------------------------------------------------------
SA - Is it like a dragons nostril?Comment
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kramer,
only joking, but there is a serious side to all of this
do your research
get some quotes from builders for the work
talk to the planning office
this is a valuable thread, there is a mountain of useful info
in this thread from people with experience which will start you off
good luck,
Milan.Comment
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I think that the buying price is too high because the number's don't stack.Originally posted by kramer
ISTM that you will be lucky to get this conversion done for 100K "all in" costs.
So 350K spend, 50K profit = 15%. This is the absolute minimum you should expect for the building work/risk involved in a project of this type/size and it seems to be the maximum you are getting. If you hit a problem on the way you are out of pocket.
It might not be that the buying price is wrong, it could be that your estimated selling price ought to be higher or the conversion cost should be lower. I cannot comment upon the first, but think it highly unlikely to be the second (as you've seem to have calculated, you have a minimum of 10K in finance costs and 10K in legals).
However, the figures that you have quoted, are the sort of figures that a first time developer works on happily (until they have been caught by a problem property). The experience developer would walk away at that price unless they are going to do the structural work themself, which I guess you are not.
timComment
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Just on the point, and that is the root cause of all the problems of that price.Originally posted by rootsnall
You want to avoid 225k to 275k. Say you get knocked back on the planning permission, which is highly likely as you don't know the game. How do you sell and recoup your costs to that point? At 250 add on a few k for your out of pocket and, wham, the stamp duty has gone up and the house is more difficult to sell. One reason it is more difficult to sell is that anyone else don't want to be shelling out for the stamp duty either. Also say you have an accident and can't cover the mortgage, which is highly likely if you're new to the game, the bank won't play because they know the property will be more difficult to sell so they'll rape you on the interest rate or pull some other cunning stunt.
If you watch the market you'll see a fair few properties at 225K come on the market in HIMO areas, but they'll disappear real quick, generally to people with "connections" in the council planning department. Unless you have such connections, or know where the bodies are buried, such a business can be a fraught experience.
threaded in "Donnygate" modeInsanity: repeating the same actions, but expecting different results.
threadeds website, and here's my blog.
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According to my spy -there are a couple of projects currently in the pipeline at Hectors House that may have some bearing on your plans.Originally posted by kramer
They affect situations where "improvements" such as conservatories or extensions have been carried out since purchase, and the other is where plots of land have been bought & have had houses built upon them.
Both scenarios will attract a liability & charges will be retrospectively applied with interest from the date of improvement or purchase of land, to the current date.
It's only fairHow fortunate for governments that the people they administer don't thinkComment
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