Adding value to a large property. How ?
Discussion
Have done or are on with a couple of new build developments this year, however have been offered a large home in a very nice village in north yorkshire in need of total refubishment.
The house is set in 0.4 acres on land & is currently a 5-bed/2-bath layout. We are looking to mess around with internals, sort gardens out, add kitchen, bathrooms, etc & have been told it would be worth circa 600k.
Now I can but it for around 375k & reckon it would cost 100k to do. Add mortgage payments, stamp, etc & its going to costs circa 500k to do, ie 100k profit, pre-tax & prior to sales fees, etc, etc.
However, my concern is that not having done any refurbs before I know something could quite easily come to light which could wipe out huge chunks of the profit immediately.
What I am interested in your thoughts in is what could be added to command a higher figure ? Initially I though swimming pool, however would this actually be a selling point or would it infact put people off due to upkeep costs. Any ideas ? The property has gardens to 3 sides, the largest being circa 80m x 20m.
p.s Obviously I've thought of looking at a seperate house in the grounds, however this is not straight forward due to the whole place being in a conservation area, etc, etc & as such need a back-up.
The house is set in 0.4 acres on land & is currently a 5-bed/2-bath layout. We are looking to mess around with internals, sort gardens out, add kitchen, bathrooms, etc & have been told it would be worth circa 600k.
Now I can but it for around 375k & reckon it would cost 100k to do. Add mortgage payments, stamp, etc & its going to costs circa 500k to do, ie 100k profit, pre-tax & prior to sales fees, etc, etc.
However, my concern is that not having done any refurbs before I know something could quite easily come to light which could wipe out huge chunks of the profit immediately.
What I am interested in your thoughts in is what could be added to command a higher figure ? Initially I though swimming pool, however would this actually be a selling point or would it infact put people off due to upkeep costs. Any ideas ? The property has gardens to 3 sides, the largest being circa 80m x 20m.
p.s Obviously I've thought of looking at a seperate house in the grounds, however this is not straight forward due to the whole place being in a conservation area, etc, etc & as such need a back-up.
I would forget the pool as they can put off many people in your sale price range due to percieved running costs.
Have you considered adding a good quality annexe (bedroom, lounge, kitchen/diner) joined too, but with seperate access from the main house. It can be marketed as a space to house ageing parents, au-pairs/nannies (which many professional families have these days) or just a guest suite.
Focus on quality and good sized rooms. Families want big kitchen diners these days. Can you incorporate a study/office,kids playroom, lots of loos / ensuites, good sized utility/boot room, decent garaging.
Speak to a local agent with knowledge of the area and properties of this value. He /she will be able to guide you as to buyers requirements and your likely return on various options.
Good luck - it sounds like a good project and one of the few ways of making money in property in the current climate.
Have you considered adding a good quality annexe (bedroom, lounge, kitchen/diner) joined too, but with seperate access from the main house. It can be marketed as a space to house ageing parents, au-pairs/nannies (which many professional families have these days) or just a guest suite.
Focus on quality and good sized rooms. Families want big kitchen diners these days. Can you incorporate a study/office,kids playroom, lots of loos / ensuites, good sized utility/boot room, decent garaging.
Speak to a local agent with knowledge of the area and properties of this value. He /she will be able to guide you as to buyers requirements and your likely return on various options.
Good luck - it sounds like a good project and one of the few ways of making money in property in the current climate.
Edited by Egbert Nobacon on Tuesday 11th March 20:51
An adjoining annexe sounds a good idea.
A present the house has an integral double garage, however it is our intention to look at converting this to living space & then building a detached double/triple garage in the grounds. The only issue we have is whether the council will allow where we propose to bring the driveway in, as it would be about 20m from a corner on a main(ish) road & I know they normally like more visibility than this.
The other up side of if we can get this driveway in is that it suddenly would allow quite easily the constructed on say a 3-bed house in the gardens, which would not detract hugely from the value of the initial house & yet would add substancial profits to the development.
A present the house has an integral double garage, however it is our intention to look at converting this to living space & then building a detached double/triple garage in the grounds. The only issue we have is whether the council will allow where we propose to bring the driveway in, as it would be about 20m from a corner on a main(ish) road & I know they normally like more visibility than this.
The other up side of if we can get this driveway in is that it suddenly would allow quite easily the constructed on say a 3-bed house in the gardens, which would not detract hugely from the value of the initial house & yet would add substancial profits to the development.
Hi Mark
I have done a few large refurbs. Two in Leeds and one in Harrogate. Depending on our ambitions, £100k sounds on the low side - but it depends on how much work needs doing, whether you are physically extending or just refurbing what is there etc. As an example, my last two enlarged a circa 1800 sq ft property to circa 2900 sq ft with large, two story extensions. Re-roof, re-render, re-plaster, new kitchen, utlity, 3 bathrooms etc etc etc. Cost closer to £180k than £100k.
Adding value for me normally entails increasing living space, amenity by way of ensuites to most double bedrooms adn a knock-out kitchen.
Good luck either way.
I have done a few large refurbs. Two in Leeds and one in Harrogate. Depending on our ambitions, £100k sounds on the low side - but it depends on how much work needs doing, whether you are physically extending or just refurbing what is there etc. As an example, my last two enlarged a circa 1800 sq ft property to circa 2900 sq ft with large, two story extensions. Re-roof, re-render, re-plaster, new kitchen, utlity, 3 bathrooms etc etc etc. Cost closer to £180k than £100k.
Adding value for me normally entails increasing living space, amenity by way of ensuites to most double bedrooms adn a knock-out kitchen.
Good luck either way.
Is it just me then? I would have thought taking on this sort of project with an uncertain house market is potentially problematic unless you have enough time of your hands to ride out any troughs in the market.
Worst case scenario, you buy it, invest money it it and then can't shift it for the price you need to just get your money back, let alone make any profit
Maybe I'm just old enough to remember people getting burned on this in the 90's!
Worst case scenario, you buy it, invest money it it and then can't shift it for the price you need to just get your money back, let alone make any profit
Maybe I'm just old enough to remember people getting burned on this in the 90's!
Agree on the pool - my in-laws just sold a house in Cheshire with a pool and everyone that came to look said they'd fill it in.
Are there other £600K (or dearer) properties in the immediate area? It will be an extra struggle if you take the house value beyond everything else around it.
Are there other £600K (or dearer) properties in the immediate area? It will be an extra struggle if you take the house value beyond everything else around it.
Hobo.
In my opinion I'd drop the swimming pool idea. If the new owners want one - let them build it. Your cash can be better spent elsewhere.
In terms of access; someone please correct me if I'm wrong but this is what I understand things to be.
If it's a single house, moving the access point closer to this corner should not pose a problem UNLESS there are obstructions (such as a tree or large hedge/wall) prohibiting a clear splay of vision at the point of entry/exit. For the number of extra 'car movements' you will impose on the Highway (2 or 3 a day most probably) this should not pose an issue with the local council (BUT check with them first before assuming all is well!).
Forget that info above, however, if you plan to impose more than one dwelling on that new access. Different rules apply.
If you need a transport expert to look at it I'd suggest you speak to Ian Liddel at WSP in London, an expert in the field but I'm sure there are local Traffic consultants in Yorkshire.
From a cost point of view - is there no way you can keep the existing garage and just build the annexe above? That way you save yourselves an absolute shedload of cash, hassle and time on building a triple garage elsewhere in the grounds (taking into account the undoubted hassle of dealing with the council and the fact that this house sounds like it's in Green Belt where there are extremely tight building restrictions). If you put the annexe in above the garage, it will add value. If the new owners want to convert the downstairs of this garage too and install a new garage elsewhere in the grounds - well that's not your problem is it?
You've already added value with the annexe above and that's all you need to do.
£100k profit before selling fees (2% all in roughly? £12k in total?) seems a bit tight to me?
(Edited for grammar, syntax and more Brackets and thoughts!)
In my opinion I'd drop the swimming pool idea. If the new owners want one - let them build it. Your cash can be better spent elsewhere.
In terms of access; someone please correct me if I'm wrong but this is what I understand things to be.
If it's a single house, moving the access point closer to this corner should not pose a problem UNLESS there are obstructions (such as a tree or large hedge/wall) prohibiting a clear splay of vision at the point of entry/exit. For the number of extra 'car movements' you will impose on the Highway (2 or 3 a day most probably) this should not pose an issue with the local council (BUT check with them first before assuming all is well!).
Forget that info above, however, if you plan to impose more than one dwelling on that new access. Different rules apply.
If you need a transport expert to look at it I'd suggest you speak to Ian Liddel at WSP in London, an expert in the field but I'm sure there are local Traffic consultants in Yorkshire.
From a cost point of view - is there no way you can keep the existing garage and just build the annexe above? That way you save yourselves an absolute shedload of cash, hassle and time on building a triple garage elsewhere in the grounds (taking into account the undoubted hassle of dealing with the council and the fact that this house sounds like it's in Green Belt where there are extremely tight building restrictions). If you put the annexe in above the garage, it will add value. If the new owners want to convert the downstairs of this garage too and install a new garage elsewhere in the grounds - well that's not your problem is it?
You've already added value with the annexe above and that's all you need to do.
£100k profit before selling fees (2% all in roughly? £12k in total?) seems a bit tight to me?
(Edited for grammar, syntax and more Brackets and thoughts!)
Edited by Oi_Oi_Savaloy on Wednesday 12th March 10:33
The architect is looking into the access issues at present (or thier planning dept is).
JohnFM - The 100k budget is not for any extensions whatsover. This is basically with to gut the house, new bathrooms, kitchens, move a few internal walls, decorate, windows, etc & sort out gardens. I already have a groundworker & landscaper lined up to do the external works free of charge on the back of another couple of projects.
Wacky Racer - Was talking about an indoor heated swimming pool, however general concencous seems not to go down this route.
Piglet - He who dares. No, seriously, it we had to keep hold of the property for a while it wouldn't be an issue. Myself or a business partner would/could move in worst case.
Deva Link - There are 2 no. similar size propertes, albiet with slightly better aspects up for 700k & another just sold for 675k.
Oi Oi Savaloy - You're right on the returns, they are tight. However at present I have another 2 developments on & could fit another one in easily. One of these is expected to return circa 48% (the other currently 27%) & as such can afford to subsidise this one slightly. Plus, I have time on my hands to be able to fit it in so why not.
JohnFM - The 100k budget is not for any extensions whatsover. This is basically with to gut the house, new bathrooms, kitchens, move a few internal walls, decorate, windows, etc & sort out gardens. I already have a groundworker & landscaper lined up to do the external works free of charge on the back of another couple of projects.
Wacky Racer - Was talking about an indoor heated swimming pool, however general concencous seems not to go down this route.
Piglet - He who dares. No, seriously, it we had to keep hold of the property for a while it wouldn't be an issue. Myself or a business partner would/could move in worst case.
Deva Link - There are 2 no. similar size propertes, albiet with slightly better aspects up for 700k & another just sold for 675k.
Oi Oi Savaloy - You're right on the returns, they are tight. However at present I have another 2 developments on & could fit another one in easily. One of these is expected to return circa 48% (the other currently 27%) & as such can afford to subsidise this one slightly. Plus, I have time on my hands to be able to fit it in so why not.
Hi Mark
How big is the existing accomodation? How does this compare to the ones that sold for circa £700k?
Re: kitchens, bathrooms and knocking a few walls around - £100k may cover it - but it depends a lot on the sort of buyer you are trying to attract. You will struggle to spec a decent kitchen for sub £20k if you are trying to attract a £750k buyer. Similarly, bathrooms will all be circa £4k-£5k each when you include everything (travertine, undefloor heating etc).
Decent windows will cost £10k for a house of any decent size - again uPVC will be 'cheaper', but these details are looked at by £750k buyers.
Depending on its present condition, you may make a great return by refurbing it to a really great standard, with a real 'selling point' kitchen, and adding no extra space at all.
Either way, hope it goes well for you.
How are the other devs moving along?
How big is the existing accomodation? How does this compare to the ones that sold for circa £700k?
Re: kitchens, bathrooms and knocking a few walls around - £100k may cover it - but it depends a lot on the sort of buyer you are trying to attract. You will struggle to spec a decent kitchen for sub £20k if you are trying to attract a £750k buyer. Similarly, bathrooms will all be circa £4k-£5k each when you include everything (travertine, undefloor heating etc).
Decent windows will cost £10k for a house of any decent size - again uPVC will be 'cheaper', but these details are looked at by £750k buyers.
Depending on its present condition, you may make a great return by refurbing it to a really great standard, with a real 'selling point' kitchen, and adding no extra space at all.
Either way, hope it goes well for you.
How are the other devs moving along?
5 bed, but are they all sizeable? If so I'd look to improve that or possibly add another (!)
Cost Effective-wise carrying out internal only alterations could reap dividends, for less risk.. I'd look closely at a proper drawing of the property.. and attempt to play around with it.
2 Bathrooms, but how many WCs? or is that in total? How many reception rooms? Size and style of kitchen? Kitchen Diner? Room for scope in the roofspace? of course you then run into the risk of having to put in a staircase.. and rooflights.. Look to have 1 family bathroom and possibly 1/2 en-suites..
A garage, double or triple could add value.. possibly with an upstairs or basement.. Now a basement would cost serious money, so the return is hindered.. but it could offer good value if done well. A home office, boys room or similar is good
Altered access - I guess you've got that sorted, or we can help (PM me).. The same with Building Control and Structural Calcs.
Although not local, I do have some friends in Cropton, near Pickering..
Eco products... Rainwater Harvesting and GSHPs (Ground Source Heat Pumps).. Might make the property more attractive to a Home Counties buyer.. It's all the vogue at the moment and can aid in living costs, especially if it's on LPG or Oil.. What about the closeness of a large town, airports and railway links.. Could make it more attractive to a Home Counties buyer.. of course you're not going to add those in, but if it is in close proximity to 1/2/all 3 then it will help to attract the right kind of buyer.
Features, Flagstones, Arga/Rayburn, Fireplaces.. All of these will help to sell it.
What sort of period is the property? What sort of style?
Cost Effective-wise carrying out internal only alterations could reap dividends, for less risk.. I'd look closely at a proper drawing of the property.. and attempt to play around with it.
2 Bathrooms, but how many WCs? or is that in total? How many reception rooms? Size and style of kitchen? Kitchen Diner? Room for scope in the roofspace? of course you then run into the risk of having to put in a staircase.. and rooflights.. Look to have 1 family bathroom and possibly 1/2 en-suites..
A garage, double or triple could add value.. possibly with an upstairs or basement.. Now a basement would cost serious money, so the return is hindered.. but it could offer good value if done well. A home office, boys room or similar is good
Altered access - I guess you've got that sorted, or we can help (PM me).. The same with Building Control and Structural Calcs.
Although not local, I do have some friends in Cropton, near Pickering..
Eco products... Rainwater Harvesting and GSHPs (Ground Source Heat Pumps).. Might make the property more attractive to a Home Counties buyer.. It's all the vogue at the moment and can aid in living costs, especially if it's on LPG or Oil.. What about the closeness of a large town, airports and railway links.. Could make it more attractive to a Home Counties buyer.. of course you're not going to add those in, but if it is in close proximity to 1/2/all 3 then it will help to attract the right kind of buyer.
Features, Flagstones, Arga/Rayburn, Fireplaces.. All of these will help to sell it.
What sort of period is the property? What sort of style?
Existing accomodation is roughly 200m2 (or 2350 sqft).
Have allowed 20k for kitchen. With regards to bathrooms, well I have a mechanical/electrical company so will get these elements of work done at good costs.
Windows. They aren't knackered so could have them refurb'd, however I suspect new windows throughout will cost another 10k as you say.
As for other developments, going really well 'now'. Had issues on one of them with a sh!te builder who I ended up throwing off site & no doubt will go legal. Subsequently used a different one who was a few k more to originally & hence why we didn't use them. Lesson learnt. Same for architect. The first one we used was a shocker. All drawings were done by hand, ie not CAD. Again, now using a very good one.
Have allowed 20k for kitchen. With regards to bathrooms, well I have a mechanical/electrical company so will get these elements of work done at good costs.
Windows. They aren't knackered so could have them refurb'd, however I suspect new windows throughout will cost another 10k as you say.
As for other developments, going really well 'now'. Had issues on one of them with a sh!te builder who I ended up throwing off site & no doubt will go legal. Subsequently used a different one who was a few k more to originally & hence why we didn't use them. Lesson learnt. Same for architect. The first one we used was a shocker. All drawings were done by hand, ie not CAD. Again, now using a very good one.
Well, good luck with it. I would be tempted, in this market, to finish the developments you are doing and get the profit in the bank before looking at new projects. There will always be other projects out there, and cash in teh bank will give you more bargaining power. Ask me how I know.....
Indeed there will be always other projects & have a couple of other plots which we have exclusivity on until the end of this year.
However, I am still a firm believer that if you build something of a good quality, in a good location & offer it a realistic price that it will sell. Only time will tell though.
You seem to be saying you've had your fingers burnt though ?
However, I am still a firm believer that if you build something of a good quality, in a good location & offer it a realistic price that it will sell. Only time will tell though.
You seem to be saying you've had your fingers burnt though ?
Hobo said:
Indeed there will be always other projects & have a couple of other plots which we have exclusivity on until the end of this year.
However, I am still a firm believer that if you build something of a good quality, in a good location & offer it a realistic price that it will sell. Only time will tell though.
You seem to be saying you've had your fingers burnt though ?
Lightly singed! I expect leaves on trees at easter will ease my problems and a buyer or two will come out of the woodwork!However, I am still a firm believer that if you build something of a good quality, in a good location & offer it a realistic price that it will sell. Only time will tell though.
You seem to be saying you've had your fingers burnt though ?
I don't think the addition of solar panels would add anything at all other than maybe a selling point to the right person.
The same goes for ground source heatpumps, rainwater harvesting, etc, etc. All 'of the moment' but can't see many paying over the odds because the property has these systems.
The same goes for ground source heatpumps, rainwater harvesting, etc, etc. All 'of the moment' but can't see many paying over the odds because the property has these systems.
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