Commercial to residential change of use & using a developer
Discussion
Hi all, I'm hoping I can get some advice from anyone that's been in a similar situation to me. I currently own a commercial garage used as a car repair workshop, which has tenants in it running their own business.
I am hoping to apply for change of use and build approximately 4 flats when the tenancy agreement ends. I have briefly spoken to the local planning department and the advisor said he didn't seem to think the change of use would cause any problems and that I should be okay. I understand until I go through the whole process I can't be sure, but I don't want to pay for the planning process until the end of the tenancy agreement, to maximise the time I have planning granted.
I have a number of questions though. I hope to maximise the value of this project as much as possible. I've been told the GDV could be approximately £400k (per flat) x 4 (no. of flats) = £1.6m.
Once I get planning permission and a good architect to design the building what is the next step?
Would I be better off funding the project by using the equity in my house as a guarantee (along with the other person who owns the garage with me) or would I be better off supplying the land and combining forces with a property developer that can take away the hassle from me?
Typically how is something like this financed and what would others recommend?
Also how much do you think me and my partner can profit from a venture like this? Ideally we wanted to build possibly 5 flats and retain 3 and give the other two to the developer as payment. Is this possible if we can stretch to 5 flats? We would like to retain the freehold if possible as the land has family history.
The property is in London.
Any help and advice would be greatly appreciated, as I can't find much helpful information on the internet on the processes involved.
I am hoping to apply for change of use and build approximately 4 flats when the tenancy agreement ends. I have briefly spoken to the local planning department and the advisor said he didn't seem to think the change of use would cause any problems and that I should be okay. I understand until I go through the whole process I can't be sure, but I don't want to pay for the planning process until the end of the tenancy agreement, to maximise the time I have planning granted.
I have a number of questions though. I hope to maximise the value of this project as much as possible. I've been told the GDV could be approximately £400k (per flat) x 4 (no. of flats) = £1.6m.
Once I get planning permission and a good architect to design the building what is the next step?
Would I be better off funding the project by using the equity in my house as a guarantee (along with the other person who owns the garage with me) or would I be better off supplying the land and combining forces with a property developer that can take away the hassle from me?
Typically how is something like this financed and what would others recommend?
Also how much do you think me and my partner can profit from a venture like this? Ideally we wanted to build possibly 5 flats and retain 3 and give the other two to the developer as payment. Is this possible if we can stretch to 5 flats? We would like to retain the freehold if possible as the land has family history.
The property is in London.
Any help and advice would be greatly appreciated, as I can't find much helpful information on the internet on the processes involved.
I'd suggest getting a good PM/QS to first assess the site and guide any architect, discuss with planners etc. to save cost through the design (often architects go OTT without practical reason) but to also maximize density, manage tender costs and then actually build-out, structuring things to protect your interests.
Don't want to break rules on here as the family firm does exactly this - Quantity surveying specializing in smaller resi/mixed use development on small-medium sites, current clients ranging from people in your shoes to PLC's. Give me a PM and I'll put you in contact with my dad who runs the firm if you want to talk things through/get some proper advice.
Don't want to break rules on here as the family firm does exactly this - Quantity surveying specializing in smaller resi/mixed use development on small-medium sites, current clients ranging from people in your shoes to PLC's. Give me a PM and I'll put you in contact with my dad who runs the firm if you want to talk things through/get some proper advice.
I think what you want to do may depend a fair bit on the attitude of your local authority to places of employment in the area.
We had to get our site into a position of not having any tenants by not renewing leases and then run our own business down to a point where we had no employees.
We then had to market it for a year to prove that it was redundant for business purposes before they would even consider a planning application.
We had to get our site into a position of not having any tenants by not renewing leases and then run our own business down to a point where we had no employees.
We then had to market it for a year to prove that it was redundant for business purposes before they would even consider a planning application.
TeeRev said:
We then had to market it for a year to prove that it was redundant for business purposes before they would even consider a planning application.
^^^This has been my experience too.Unless it's in town and surrounded by homes, ideally who have complained about the business, then generally Councils don't like losing employment.
My site has houses all around it (see the photo's in my pre retirement build thread) and I still had to get marketing done through a commercial agent who then had to do a report, I also had to get surveys done on transport, contamination, archaeology and bats, LA's like reports.
One thing I did invest in was a very good planning consultant, not cheap but worth every penny.
One thing I did invest in was a very good planning consultant, not cheap but worth every penny.
roofer said:
I would see what the land is worth with planning first.
Blueg33 I think it is specialises in this field.
Surely that's subjective, based on the type of architect you get to draw up the plans? How do I find a really good architect to maximise the use of land? I'm assuming most architects will pay the site a visit to give me an estimation of what they think is feasible before I pick who to go with?Blueg33 I think it is specialises in this field.
What's the benefit of using a chartered surveyor for this?
I'm hoping Blueg33 spots this post and offers his advice.
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