Converting a Terraced House into Two Flats: A Comprehensive Guide
Converting a terraced house into two flats is a popular strategy for property investors and homeowners looking to maximise rental income or property value. With demand for smaller, affordable housing units rising, splitting a property into flats can generate significant returns. However, the process involves careful planning, meeting legal requirements, and ensuring the conversion is cost-effective.
This guide outlines the key steps, legal considerations, and costs involved in converting a terraced house into two flats, helping you navigate the process smoothly.
Why Convert a Terraced House into Two Flats?
Converting a terraced house into two separate flats offers several advantages, including:
- Increased Rental Income: By splitting the property, you can rent out two separate units, often generating higher rental income than letting the house as a single dwelling.
- Higher Property Value: Converting a house into flats can increase the overall value of the property, particularly in high-demand areas where smaller units are more marketable.
- Flexibility: If you plan to live in one flat and rent out the other, the conversion allows you to generate income while maintaining your own living space.
- Easier to Sell: Flats are often more affordable for first-time buyers, which can make selling the units easier compared to selling a full house.
Steps to Converting a Terraced House into Two Flats
Converting a house into two flats involves several stages, from initial planning to final construction. Here's a step-by-step overview of the process:
1. Initial Assessment and Feasibility
Before starting the conversion, assess whether the project is feasible:
- Size and Layout: Check if the terraced house is large enough to accommodate two separate flats. Each unit should have adequate space for essential rooms (kitchen, bathroom, living area, and bedrooms) while maintaining access to services such as water, gas, and electricity.
- Market Demand: Research the local property market to determine if there is demand for smaller flats. In areas with high demand for rental properties, the conversion is likely to be more profitable.
- Potential Costs: Obtain a rough estimate of the conversion costs to see if the project fits within your budget. Consider expenses such as planning permission, building regulations, construction, and legal fees.
2. Planning Permission
One of the first legal steps is securing planning permission. In the UK, converting a single dwelling into two separate flats usually requires planning permission from the local council. Here's what to keep in mind:
- Contact Local Planning Authority (LPA): Submit an application to your LPA, outlining your conversion plans. The council will assess factors such as impact on local infrastructure, parking, and the suitability of the property for conversion.
- Permitted Development Rights: In some cases, you may be able to convert a property under Permitted Development Rights, which allow certain changes without planning permission. However, this is less common for flat conversions, especially in listed buildings or conservation areas.
- Neighbours: Be aware that neighbours may object to your conversion, particularly if it affects parking or the appearance of the house. Engage with them early to explain your plans and avoid disputes.
3. Building Regulations
Regardless of whether you need planning permission, you will need to comply with building regulations. These regulations ensure that the conversion meets safety, energy efficiency, and accessibility standards. Key building regulation requirements include:
- Fire Safety: Ensure the property has adequate fire exits, smoke alarms, fire doors, and safe electrical wiring. Flats must be separated by fire-resistant materials.
- Sound Insulation: The flats must meet soundproofing requirements to prevent noise transfer between units.
- Structural Work: If you're making significant alterations (e.g., removing walls or adding staircases), you’ll need to ensure that the property’s structure remains safe.
- Drainage and Utilities: Each flat will need separate plumbing and electricity connections. You may also need separate meters for utilities, which can involve coordination with utility providers.
- Energy Efficiency: The conversion must meet energy performance standards. You may need to upgrade insulation, install double-glazing, and ensure the flats meet EPC (Energy Performance Certificate) requirements.
4. Design and Layout
Work with an architect or building designer to create an efficient and appealing layout for each flat. Key considerations include:
- Separate Entrances: You may need to create separate entrances for each flat, either by converting existing doors or installing new ones.
- Maximising Space: Consider the best use of the available space. Open-plan living areas can make smaller flats feel larger, while strategically placed windows improve natural light.
- Privacy: Ensure that each flat has a sense of privacy, with separate entrances and soundproofing between the units.
5. Construction and Conversion
Once you have planning permission and a design plan in place, it's time to start the construction. You’ll need to hire reputable contractors to handle the building work. Key tasks may include:
- Structural Alterations: This could involve knocking down walls, building new partitions, or adding staircases if you're splitting a multi-storey house.
- Electrical and Plumbing Work: Each flat needs its own electrical and plumbing systems, including separate boilers, heating controls, and water meters.
- Finishing Touches: Complete the conversion by adding flooring, fitting kitchens and bathrooms, and decorating the flats to make them market-ready.
6. Legal and Administrative Tasks
Before renting or selling the flats, take care of the following legal steps:
- Separate Titles: You may need to legally divide the property by creating separate titles for each flat. A solicitor can help with this process.
- Leaseholds: If you plan to sell the flats, you'll likely need to sell them on a leasehold basis, meaning the buyer will own the flat for a specific period while you retain ownership of the land (freehold).
- Mortgage Considerations: If you have a mortgage on the property, notify your lender of the conversion. You may need a new mortgage arrangement if the property is split into flats.
Costs of Converting a Terraced House into Two Flats
The cost of converting a terraced house into two flats can vary widely depending on factors like the size of the property, the extent of the work, and location. Typical costs include:
- Planning Permission Fees: £200 - £500
- Architect Fees: £1,000 - £3,000, depending on the complexity of the design
- Building Regulation Fees: £500 - £1,000
- Construction Costs: £25,000 - £50,000, depending on the level of renovation and structural changes
- Utility Installation: £1,000 - £3,000 for separate meters and connections
- Legal Fees: £1,000 - £2,500 for title splitting, leases, and conveyancing
How Fraser Bond Can Help
At Fraser Bond, we specialise in property conversions, helping homeowners and investors maximise the potential of their properties. Our team can assist with every stage of converting your terraced house into two flats, including:
- Planning and Design: We help you navigate planning permission, building regulations, and work with architects to design efficient layouts.
- Project Management: From selecting contractors to overseeing the construction, we manage the project to ensure it’s completed on time and within budget.
- Legal Support: Our legal experts can handle title splitting, lease creation, and any mortgage adjustments required.
Conclusion
Converting a terraced house into two flats can be a lucrative investment, increasing rental income and property value. However, it requires careful planning, compliance with legal regulations, and a clear understanding of the costs involved.
With Fraser Bond’s expertise, you can confidently navigate the conversion process, ensuring a successful project that maximises your property's potential. Contact us today for tailored advice and professional support with your conversion project.
