When it comes to selling a property, homeowners will want to get the highest possible from the new buyer. Whether homeowners are planning to sell their property immediately, or they’re updating their home for a future sale, they will be looking for ways to add value. Often this comes in the form of renovations, such as decorating, adding an extension or fixing a roof. By splitting a house into flats, homeowners could increase the value of their home by up to £70,000.
According to propertypriceadvice.co.uk, splitting a house into two flats could add a potential value of 30 per cent.
As of May 2019, the average price for a house in the UK was £229,431 (land registry.data.gov.uk) therefore 30 per cent of the value would be £68,000.
Converting a house into flats is very popular, especially in London where flats tend to be in high demand and easier to rent out.
Therefore by splitting a current property into separate units, sellers could maximise rental income in the short term and profit with a sale in the long run.
How to do it?
Before taking this leap, homeowners should first do their research to find out if flats are on demand in their area.
If they find that larger properties are taking longer to sell where they live, however, flats are shifting quickly, a conversion could be a good idea.
Homeowners can find this out by speaking to local estate agents.
Sellers will also have to seek planning permission before making this commission, as the council will have to sign it off.
As well as this, it’s important to remember that it will cost both money and time to complete such a large scale conversion.
Each flat will need its own gas, electricity and water, therefore, service providers should be contacted as soon as possible, because they can take much longer than expected which will delay the whole project.
Sellers will want to make the conversion without spending too much money, as this will affect their profit, so it’s important to plan and check how much it will cost.
Some conversions can cost between £15,000 to £25,000, however, this price can increase depending on the work that is needed.
A two bedroom flat was recently listed on Zoopla for just £40,000.
The flat – which is located in Preston – has two bedrooms, one bathroom, a large dining area and lounge.
Although it might look like a good deal at first glance, all might not be as it seems, and buyers may need to beware.