If you have ever hunted for a flat in London, you know the struggle. The demand is high and 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 has collected the main things to look out for.
1. Research the market
The first step is to work out whether splitting the house into separate flats would pay off at all. 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.
It is worth talking to local estate agents or construction companies first. 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 right 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 the following.
Flat size. Make the most of each flat, and start from what the market actually wants. One bedroom or two? With an en suite?
Layout. Once you know what the house can take, decide the layout. The question is how to get the most usable floor space out of it.
Access. Every flat needs its own entrance, and ideally its own parking and its own way out to a patio or garden.
Services. Each flat needs its own water, electricity and gas supply. New supplies are one of the easiest things to be held up by, so book them early.
Basement conversion. If you already own a house in West London, a basement can become a self contained flat in its own right.
4. Tax
Tax liabilities will change after you undertake your project, so we recommend getting advice from an adviser or an accountant.
With thorough research and preparation, splitting a property into flats can work financially. Our top tip is to involve a design and build company, which takes the legal requirements and the renovation off your desk. NU Projects London works on turnkey projects of this kind, so tell us about the property, or call the team on 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.
Published 17 November 2021. Written by the NU Projects studio, edited since for house style and accuracy.