Time to Split Your London Property into Flats for ROI!
If you were ever in the position of hunting for a flat in London, you know the struggle: the demand is high, the supply is low.
In some London boroughs, the demand is so high that splitting properties into self-contained flats can increase property owners' return on investment (ROI).
So, if you are a homeowner in London or planning to purchase a property and split it up into flats, Nu Projects London collected the main factor to look out for.
1. Do Your Research of the Market
The first step is to consider if splitting your dwelling into separate flats could work off. If you live in a neighbourhood with little to no demand for renting a property, the development could cost you more money than you make from it.
We recommend taking time to assess the market in your property's area and the prices at which similar flats are rented out. For example, suppose the property is located in West London areas, such as Kensington and Chelsea, Fulham, Belgravia, where there is a greater demand for renting flats. In that case, property owners can ask for a higher rental.
Consulting with local real estate agents or construction companies to gain insight is recommended. Look out for fast selling property types, current and upcoming developments and regeneration plans.
2. Planning and Legal Requirements
These types of property developments require planning permission, so you will need to contact the local planning department and apply for one.
Once the planning permission is obtained, you can apply for Building Regulations. Note that this must take place before you start any building work.
If you are planning to purchase a new property for the purpose of splitting it into flats, it's crucial to consult with a solicitor. They will check whether any legal implications are standing in the way of your project.
If you are planning to acquire secured funds for your project, you might find that some mortgage lenders are more open to redevelopment endeavours than others, so you may need to look around for the best choice.
3. Design Stage
Once you have settled the legal obstacles, it's time to think about what you really want to bring out of this project. If you haven't involved any construction companies, maybe this is the stage when you should consider signing up with an expert.
A professional company can help you work through and decide on the followings:
Flat size: Maximise the potentials of your flats considering what is in demand on the market: one or two-bedroom apartments? With en-suite?
Layout: If you thought through all the potentials of the dwelling, you have to decide on the layout. Think about how can you achieve the most usable floor space.
Accessibility: There are many things to consider here: every flat needs its own entrance and parking space as well as private entry for the patio or garden.
Utility: Each flat need its own utility service: water, electricity and gas. The progression of your project can be withheld easily by the installation and activation of these services, so booking these services should be a priority.
Basement Conversion: If you are already a property owner in West London, you should consider converting your basement into a self-contained flat.
4. Taxation
Tax liabilities will change after you undertake your project, so we recommend getting advice from an adviser or an accountant.
If you do thorough research and preparation, splitting up your property into flats can be highly financially beneficial. Our top tip is to involve a design and build company; they can assist you with the legal requirements and renovation stage, making your project less stressful. Nu Projects London are experts in turnkey solutions so feel free to contact our team at 020 7731 6841.
Takeaways:
1. Research the area you are planning to do your project in; look at rental prices, ask advice from estate agents, consult with construction companies
2. You will need to apply for planning permission and Building Regulations. If you sign up with a design and build company they will take care of the applications.
3. Consult with a solicitor to find out all the legal implications.
4. Consider a layout that maximises the usable floor space.
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