UK Landlord Forum / Life

Hi There,

I am currently purchasing a 4 bed victorian house in Essex and am thinking about splitting it into two  2 bed flats.

Obviously we would need to split the utilities, 2 gas metres, electric, water etc.

Has anyone on here done this and if so can you give me a rough cost as to what utility companies charge to do this work?

Thanks

I am in the process of separating my granny flat from my house. Same difference really. It cost me £1150 approx for the new water connection. That was with me digging my ground out up to the street. It cost £2500 for the electric to do the same with me doing the ground work yet again. The gas quoted a neighbour £7k so I didnt even ask them myself.

I wish I hadnt done it. It has cost me too much. Are you really going to lose that much for leaving it as a house? Maybe keep second flat as electric heating and no gas? If water pressure is adequate (mine wasnt) you may be able to split the supply

Hello Mr Jones,

Wise advice from Jeffo.  Add to that:
+ Fire Escape assesment from local / fire authority;
+ Planning permission.  What does the town plan say about this area?  Could Council stipulate off road parking and have you got the land / road access to do that?  As well as the cash if you need to lay a new drive with a soakaway.
+ Requiring to pass sound proofing tests.  You've more than likely got suspended wooden floors and they are very difficult if you try to DIY them yourself.  And if you don't pass you won't get Building Regs signed off and you can't occupy it.  Do it professionally (and pretty much guarantee a pass) and wave goodbye to some more money.
And I'm sure there's more that other people can add onto that list.

It is true that two flats normally yeild more rental income than one house.  Can I please suggest you do your sums very carefully.  It could easily be over a decade before you see yourself break even on the project because you fund now (and pay interest on the funding if you've not got cash laying about) but only get the incremental income over a long term future.

Doing this kind of thing is usually the province of property developers because they sell immediately, hence unlocking the increased sales price value immediately.

Hope this helps.

Thank you for your advice!

The house works perfectly as an HMO but was considering converting it and selling on as two leashold flats.

Regarding getting your money back you can always remortgage after 6 months anyway!

Does sound like it is expensive, although confusing because I have been on a course all weekend with professional developers and they seem to think its not that expensive at all!

I guess it all depends on what needs doing by who etc but you have given me some extra things to consider.

Thanks for the tips,

Sarah