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.
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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