I'd be grateful for advice/opinions please. 

 

I have planning for conversion which consists of a block built building approx 60m2 which needs underpinning, with a small extension (approx £30m2) which will need to be built from scratch with very difficult ground conditions: narrow, slight slope, trees, clay. It's starting to look like each part of these will cost upwards of £100k to convert/build. ie the extension is disproportionately expensive and does not have good views etc

 

Considerations:

I only have £100K

I prefer low risk.

I was ill last year and can no longer practice my profession and so am unlikely to get a mortgage.

As long as I keep my outgoings low I can manage financially 

I have considered selling up, but for many reasons, this plot is in my ideal location.

 

A builder I like, who has a reputation for being good, but liking high end, is encouraging me to borrow and 'realise my asset'.

 

I am now fluctuating with this view:

The risk averse, modest me says just create a 1 bed/studio with the underpinned stable part and bide my time for the extension, or even negotiate with the planners for something else in the future.

I have nearly 2 acres so something else might be possible in the future 

For example a nice large garden studio would give much cheaper floor space.

 

Have you considered knocking it down and building something new on foundations designed for the difficult ground conditions? This option might be cheaper than under pinning etc.

2 minutes ago, Triassic said:

Have you considered knocking it down and building something new on foundations designed for the difficult ground conditions? This option might be cheaper than under pinning etc.

Beat me to it ?

The council have told me its against their policy and are not keen at all

 

5 minutes ago, Triassic said:

Have you considered knocking it down and building something new on foundations designed for the difficult ground conditions? This option might be cheaper than under pinning etc.

Not to mention, will save 20% VAT

 

19 minutes ago, Jilly said:

The council have told me its against their policy and are not keen at all

 

The current building is structurally unsound, the best and possibly cheapest course of action is to knock it down and replace it with something modern, it’s probably the more sustainable thing to do, as you will end up with something more thermally and energy efficient, not to mention the saving in labour and materials used to prop up the current building.

39 minutes ago, Jilly said:

I have nearly 2 acres so something else might be possible in the future 

Looking at the bigger picture. You have a 2 acre garden, is this within a town or village, could you sell off a small part of it to another self builder, so as to bring in much needed cash to help you realise your dream? 
 

42 minutes ago, Jilly said:

A builder I like, who has a reputation for being good, but liking high end, is encouraging me to borrow and 'realise my asset'.

Good builders are hard to find, but, do you want one who will likes the high end? They could quickly spend your money. You need a builder who understand your budgetary constraints and is willing to look at ways of saving money.

My comments:

 

1 - You are the customer, and really need to be positioned and accepted as the authority.

2 - I think it makes sense to get what you need built to a suitable quality that you are happy with, then look beyond that - making provision to do so in the things you build now.

Ferdinand

Edited December 6, 20196 yr by Ferdinand

How much is the quote for underpinning?

 

Regarding knock down and rebuild.... 60sqm is about 600sqft. £100,000 / 600 is about £160/sqft.  It's possible to do a new build for £160/sqft but its not a generous budget. High end can be nearer £200/sqf.

 

Quote

A builder I like, who has a reputation for being good, but liking high end, is encouraging me to borrow and 'realise my asset'.

 

If money is tight I think first thing to do would be to make sure that spending £100K on the existing building will increase its value by at least a similar amount. Perhaps get some estate agents to take a look at its value "as is" and an estimate for its "converted" value.

 

As others have suggested - If you have 2 acres I would seek advice on getting planning for another house and selling off part of the site as a plot. You should also get tax advice. It might be better to get outline planning permission for an extra house now but sell it AFTER your conversion is completed when the new plot is part of your garden. Lot depends on the layout of the land.

 

47 minutes ago, joth said:

Not to mention, will save 20% VAT

 

 

Has the building been lived in before? If not then there is no VAT saving to be had by knocking it down and rebuilding. Conversions are also zero rated it's just the way you get there is slightly different. With a new build the builder should zero rate it to you. With a conversion the builder charges you 5% but you can reclaim that.

 

Edited December 6, 20196 yr by Temp