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Just wondering if anyone can give me some advice on the following.
I have 8 BTL properties to my name but have never bought anything like this before and I am looking at some land with planning permission to build an office building which will have 3no number offices in and the GIA is around 1600sqf. I am not experienced in buying commercial, is there anything I should look out for? The land is behind some other buildings and is currently 6no garages and the entrance is between two houses and there is a carpark within the area, I have my own building company so the build is not the difficult bit for me. I would potentially use one of the offices to run my business out of and rent the other two out. Would I have to pay business rates and what other costs should I look out for. The land is on for 225k and I would hope the build costs would be no more than 100-120k. Any advise would be appreciated.
Are you still considering this opportunity or have you taken action on it already? Some questions that will hopefully help you to hone in on information gaps to fill:
What is demand like for offices in the area? If you build it and there is not much demand (other than for your own office) then you will have little value to show for your work. Similarly, are there any alternative schemes that would be appropriate for the land that would be more valuable? (i.e. seeking planning for a different scheme or use)
What sort of garages are they? Worth bearing in mind potential hazardous materials (e.g. corrugated asbestos roofs) as that will have a demolition and disposal cost. Also worth trying to establish what the land was used for previously...in particular were there any hazardous material uses that might have introduced contamination into the environment.
How solid is the planning permission? Are there any access rights issues with the land? What are the ground conditions like? How wide is the access between the two houses? I would want to make sure I had all the necessary rights to use that access.
Check what exemptions may be available for business rates.
What conditions are there in the planning decision notice? Those may also point to other costs you may incur in demolition and construction of the offices.
Utilities...what existing utility supplies are there? Adding utilities can get very expensive so make sure those are costed up.
* New build residential developments and flat conversions in the Home Counties* High end HMOs in Reading and Bracknell