Time to split your London property into flats

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. Splitting properties into self-contained flats can increase property owners’ return on investment (ROI).

So, you may be a homeowner in London. Or you may plan to purchase a property and split it up into flats. Either way, NU Projects London has collected the main things to look out for.

1. Research the market

The first step is a check. Work out whether splitting the house into separate flats would pay off at all. Your neighbourhood may have little to no demand for renting a property. If so, 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. Also assess the prices at which similar flats are rented out. For example, suppose the property is located in West London areas. Think of areas such as Kensington and Chelsea, Fulham, Belgravia. There is a greater demand for renting flats there. 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.

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 stand in the way of your project.

You may be planning to acquire secured funds for your project. You might find some mortgage lenders more open to redevelopment endeavours than others. So you may need to look around for the right choice.

3. Design stage

The legal obstacles are now settled. It’s time to consider what you really want to bring out of this project. You may not have 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. Ideally it has its own parking. Ideally it has 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. You may 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. It 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. 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.