London is a fantastic market for flats. There are many single or couple professionals in London who would rather have a flat than a house or simply cannot afford the cost of renting or buying a house.
The advantage of turning a house into 2 flats is that there is a good opportunity for a higher rental income with the flats combined and sometimes even higher profit from selling the separate properties.
Do Your Research! – Speak to estate agents in the local area. Is there a higher demand in the area for flats than there are for houses?
Make sure you can get planning permission for this conversion. Contact the local council.
Each flat will need its own gas, electricity and water. It is important to contact the service providers as soon as possible, they often take much longer than expected and can delay the whole project.
You will need to have separate boilers for each flat.
You will need to have a separate heating system for each flat.
Each flat will need an entrance so bear this in mind when planning the design.
You will need to add soundproofing when converting a house into flats.
You will need to meet building control approvals
If the house that you want to convert is currently mortgaged you will need to speak to your lender as they may be reluctant in case you default. Some lenders will consider it on a commercial basis.
Do your before taking on a project. In some areas of London the house value will be more than the flats combined or will come out to the same price after the costs spent on the refurbishments so make sure this will be a worthwhile project for you.