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  • Property-a-holics

    Large victorian conversion?

    Hi guys,

    My siblings and I (4 in total) inherited a large property in London. We're in the process of figuring out how to deal with it, IHT, CGT etc. I've got a couple of ideas but I wanted to run it by the Tribe and see if I'm missing anything glaringly obvious. A bit about the property;

    3000sq ft over 3 floors.
    Victorian, high ceilings etc.
    Not a HMO but laid out in that way by previous owner.
    90ft back Garden, front garden plus parking for 2 cars.
    Asking price per sq ft in the area between £620-£700 for houses/flat conversions.
    Too big/expensive for a family home in this area.
    Developers offering too little.
    Good London Borough.


    The original idea was to sell to a developer and thats the end of it. Unfortunately given the IHT bill along with CGT and other selling fees we'd all come out with much less than we'd have hoped. The market is purely developers as it stands.

    My idea to maximise value is to split the property into rental flats then raise a mortgage against it to release some of the equity for each of us to invest as we please. I'd be investing in more property. This would allow us to avoid CGT in the short term along with other tax benefits.


    Obviously this is a massive project with all sorts of future implications vs taking a lowish cash offer.

    Have any of you taken on conversions like this? House into 3/4/5 flats?
    What was your cost?
    Did you project manage it yourself or hire a dedicated PM?
    Any obvious issues I'm not considering?
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    Hi there,

    This sounds like an interesting project and the type that I enjoy doing. Having said that I would be careful taking on such a large project without much building or legal experience with this type of plan.

    You need:
    Good advice from a town planner/architect
    The right legal advice re splitting the title and how to approach your lender, the lender element is vital and could stop a sale if they aren't managed correctly.
    An experienced building team with specifically this experience - we have run in excess of 100 projects and I wouldn't advise pm it yourself. Our builder does this for us.
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    Cormac Henderson.
    National Property Trade
    T 0207 801 4141
    3 Leeward House, Plantation Wharf, London, SW11 3TX
    http://www.NPTquickhousesale.co.uk/

    Matty,

    Doing a JV with a developer may be an option to consider, depending on the specifics there may be away to achieve most of what you are trying to do. John Corey may well know someone that could at least be a sounding board for you. You need to get a clear idea of the art of the possible. It would be great if you could hold on to a family asset (or part of it) but that may not be possible of course.
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