Converting a 4 bed detached house into flats

[Samza25]

Hi guys, I hope this is the right place to ask about this. I would really appreciate any advice you can give me.

The property in question was handed down to my father and me and is completely paid off/freehold.

It was originally converted into 4 flats back in the late 70's by my grandfather, when perhaps property regulations and red tape were not much of a barrier. It has since been virtually gutted. The view is for me and my father to convert it back into 4 separate self contained flats as it used to be in order to generate rental income, and as a first step into property investment/house flipping.

However, I am worried that it is going to be a lot of hassle, and perhaps it would be more sensible to restore the property to a family house, selling it for a decent amount that we can invest in the next step on the ladder. Or potentially HMO?

Here is some information about the house/location to help you get an idea of any pluses and issues:

1. We own the property next door, which is separated by a driveway leading to a large yard area behind, so even though the street is limited on parking, we can create an off street parking area for at least four cars. The yard area behind the property is shared by the other house we own.

2. The house is in an ideal location for commuting to the city via car or bus. Also walking distance to shops and restaurants with a park.

3. It's in a more affluent/pleasant and safe area of the city.

4. Most of the work apart from signing off electric and gas can be done by my father as he's a builder/all rounder and has built a house already. I am the apprentice! (I don't just make the tea though)

5. As far as I can tell, no other houses in the street have been converted into flats. (they don't have enough space though)

6. There has been a new heating system installed, including new radiators throughout the house. (Do self contained flats need separate systems?)

What do you think would be the best move? Considering we are looking to go into property full time eventually.

Cheers!

 

[PostBrexitInvestor]

The first thing I would do is check with the council as to whether the property can be converted back into four self-contained flats as it was in the past. I would then look to review potential rental income/building values for an HMO, large family house and four self-contained flats. When you have this information, if you could post it then we can look at the options?

 

[Samza25]

The first thing I would do is check with the council as to whether the property can be converted back into four self-contained flats as it was in the past. I would then look to review potential rental income/building values for an HMO, large family house and four self-contained flats. When you have this information, if you could post it then we can look at the options?

Yes, I think this is the most sensible approach. A hard conversation to have with my father though as he's more the type to plow on and worry about it later.

I think as a first project, converting it into flats again and having to deal with providing adequate water, electrical and gas supplies as well as waste and also noise isolation is going to be an absolute nightmare. I am starting to lead towards just restoring the house as a nice 4 bed family home and using the profits to renovate and sell another property and so on. Unfortunately I am not really holding the reins on this one.

 

[FWL]

Do you know what plans your father has?

 

[Longterminvestor]

What kind of price do 4 bedroom properties and individual flats go for in the area? As it is all part of one building I would guess it would be easy to add some kind of security to the entrance so you could sell them as "secure entrance" flats. That must add a few pounds onto their value?

 

[manxdevelopments]

What did you go for in the end, is there any update?