Hello,
My mother owns a 4 bedroom house in clapham, london. The house was worth 1.4 million when last valued in December last year.
My mother has £70,000 left on mortgage but only an income of £8k p/a
Her low income makes it very hard for her to get a mortgage
I believe it is very important for my mother to keep hold of this property as there is planned regeneration work in an already affluent area so cannot see these house prices declining.
As she would like me to get on the ladder we have looked at the possibility of converting the house into flats. It currently has enough square meterage required by the council and both adjacent properties have fully extended although there are few examples of conversions like this on the road.
So the plan would be to convert the house into 3 self contained flats. 1 x 3 bedroom, 1 x 2 bedroom and 1 x 1 maybe 2 bedroom flat. One for my mother, me and one rented.
This would provide funds from the rented flat to pay of remortgage and my rent to support my mother as a pension.
I have estimated work to cost £220000. This would include loft extension, ground floor side extension and a second storey extension. The house will also require some underpinning but this is not a huge problem.
We would need to remortgage to raise funds for the work roughly £150,000.
My mum would have liked for us to buy a house together as she is getting older but have explained that I need my own space and see this as a great option to be close, keep the house as an investment and to stay in the area.
It may also be detrimental to turn I to flats as I reality I am not sure wether this would add on that much value than if we renovated into a family home and sold but that would mean losing the house.
I would love some advice on the following:
Has anyone undertaken this kind of project and have any advice?
Are there any legal/tax implications we should be aware of especially if selling after conversion?
Does this sound like a good idea?
Is my budget realistic?
Where is the best place to get advice?
My mother owns a 4 bedroom house in clapham, london. The house was worth 1.4 million when last valued in December last year.
My mother has £70,000 left on mortgage but only an income of £8k p/a
Her low income makes it very hard for her to get a mortgage
I believe it is very important for my mother to keep hold of this property as there is planned regeneration work in an already affluent area so cannot see these house prices declining.
As she would like me to get on the ladder we have looked at the possibility of converting the house into flats. It currently has enough square meterage required by the council and both adjacent properties have fully extended although there are few examples of conversions like this on the road.
So the plan would be to convert the house into 3 self contained flats. 1 x 3 bedroom, 1 x 2 bedroom and 1 x 1 maybe 2 bedroom flat. One for my mother, me and one rented.
This would provide funds from the rented flat to pay of remortgage and my rent to support my mother as a pension.
I have estimated work to cost £220000. This would include loft extension, ground floor side extension and a second storey extension. The house will also require some underpinning but this is not a huge problem.
We would need to remortgage to raise funds for the work roughly £150,000.
My mum would have liked for us to buy a house together as she is getting older but have explained that I need my own space and see this as a great option to be close, keep the house as an investment and to stay in the area.
It may also be detrimental to turn I to flats as I reality I am not sure wether this would add on that much value than if we renovated into a family home and sold but that would mean losing the house.
I would love some advice on the following:
Has anyone undertaken this kind of project and have any advice?
Are there any legal/tax implications we should be aware of especially if selling after conversion?
Does this sound like a good idea?
Is my budget realistic?
Where is the best place to get advice?
