CONVERT YOUR HOUSE INTO FLATS

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.

Converting a house into two or more apartments is becoming increasingly popular. Landlords are tapping into the increased profit-making potential of subdividing a property, especially in city locations, where flats are often more sought-after.

What are the benefits?

There are several advantages to sub-dividing a property for letting purposes. These include:

• Having more assets to sell. If you decide to sell in the future, you’ll effectively have two or more properties to generate money from, not just one. This can seriously elevate your overall profit.
• Renting more than one property. Generally speaking, the more rentable properties that you have, the higher the amount of rent you’ll generate.
• If you decide to down-scale your buy-to-let business in the future, you could continue renting out one apartment, and sell the other(s) to free up some cash.
• Broader appeal. This is especially the case in cities, where many professionals actively seek apartments rather than entire houses.

Points To Bear In Mind When Converting a House Into Flats

Do Your Research! – Speak to estate agents in the local area. Is there a higher demand in the area for flats than there is for houses?

Planning Permission

Make sure you can get planning permission for this conversion. Contact the local council.

Services

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.

Boilers

You will need to have separate boilers for each flat.

Heating System

You will need to have a separate heating system for each flat.

Entrance

Each flat will need an entrance so bear this in mind when planning the design.

Soundproofing

You will need to add soundproofing when converting a house into flats.

Building

You will need to meet building control approvals

Mortgaged Properties

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 yours 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.

Before you get started

As with any property investment, it’s vital to do your research beforehand. You’ll need to carry out some market research, with a view to find out more about:

• The rental market. Who is renting property in the area? Are they actively looking for flats? If so, how many bedrooms are popular? What sort of style of home is being snapped up quickly?
• Average property prices. It’s imperative to find out what the average house price is in the area, to ensure that you are not paying over the odds. Remember, you will need cash to convert the property, so you need to keep an eye on your budget right from the start.
• Desirable areas. There is no point purchasing a property on a street that nobody wants to live on. As a general rule, tenants seek accommodation that is near local amenities and prefer being within walking distance of transport links (especially the train station). If you are targeting families, research the local schools. You will want to buy a house in a high-performing school’s catchment area.

Looking for a builder who can convert your house into flats? Get touch with us! 020 7916 2087