Convert a House into Flats
The purchase of a house to convert into flats will primarily take place in high density areas, especially town and cities. The main advantage is increased rental income for landlords, but it could also increase the value of a single property if converted to two or more units.
1 To divide a property into multiple units, you will of course require planning permission. If the house is listed it will need Listed Buildings Consent. If an element of demolition is required you may need Conservation Area Consent. The Council may also have a limit on the quantity of conversions in a particular street. Something as seemingly minor such as parking spaces could also be an issue.
2 An early look at your Local Authority’s Planning Portal should be your first port of call. Some will only provide permission if the house was a four bedroom property in the first place, at least one two bedroom property can be provided, a parking space can be provided etc. It may be that your property does not fit minimum requirements so you could avoid wasting time and effort straight away.
3 Apart from adding additional kitchens and bathrooms, there are a number of costs that may not relate to other types of renovations: i) Building Control fees, ii) Planning fees, iii) Architects' fees, iv) Re-routing of water supply, v) Re-routing of wiring, vi) Re-routing of gas supply, vii) Building/Structural changes, viii) Sound Proofing, ix) Fire safety and emergency exit requirements.
4 If you are planning on converting a freehold house into leasehold flats, you will need to seek advice from mortgage providers. Some lenders will only allow you to borrow on titles that have separate leaseholds. All leases will need to adhere to the Council of Mortgage Lenders instructions for leasehold properties.
5 A solicitor will guide you through the lease process, which will include a copy of the Planning Permission for the development, a copy of the Building Regulations Completion certificate, the NHBC inspection certificate, sets of Compliant Plans showing the flats set out in accordance with Land Registry requirements and insurance documentation.