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#NU BLOG

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?