Hi everyone

[Canski]

Hi everyone. I just stumbled across this excellent forum. I’m a Brickie heading for my 40th winter on site but this one being my first ever ‘developer’ self builder.  I have loads of questions but will have a good scout through this forum first to save repeating questions. 

[Canski]

I have a bit of time to put more info up about my project. I'm currently in rented so need a house to live in so it is now time for this. The existing house was the site office for a major house builder who developed a 500 odd unit housing site around it and for one reason or another didn't proceed with the final 2 houses for one reason or another. 

HTBC Plot 2-Planning Elevations Rev A.pdf HTBC Plot 2-Planning Plans Rev E.pdf

[Radian]

Sorry, not been following any of your exploits. Are you saying you now own this old house that straddles the developers plots 1 & 2 or have an option to complete plot2?

[Canski]

1 hour ago, Radian said:

Sorry, not been following any of your exploits. Are you saying you now own this old house that straddles the developers plots 1 & 2 or have an option to complete plot2?

Sorry , I bought the old house and the land shown on the site layout. I intend to demolish the old house (shaded) and build 2 new houses on Plots 1 & 2 and keep Plot 2 for myself and sell plot 1.

[Radian]

Gotcha. I can't help wondering what constraints you're operating under. What I mean is, demolition of a sizeable house like that is expensive. Would there be no mileage in extending and converting it into two semi-detached properties? Or is the demolition in some way mandated as part of the planning for the development? Our previous house was the site office of the developer that built a large housing estate. They'd set themselves up in one of the king sized variants of the houses they'd built and added an extension on one side and converted the garage into another room on the other side so it was pretty big. plus it was bristling with telephone points and mains sockets. As soon as I pointed out there was no garage they pointed to several still unsold and said take your pick. 

[Canski]

9 hours ago, Radian said:

Gotcha. I can't help wondering what constraints you're operating under. What I mean is, demolition of a sizeable house like that is expensive. Would there be no mileage in extending and converting it into two semi-detached properties? Or is the demolition in some way mandated as part of the planning for the development?

It’s more a case of the house is 160 years old and in a poor state of repair, it’s set way back from the new building line at an odd angle and too far to one side of the site to renovate. The thought did cross my mind when I eventually got inside the place but I soon talked myself out of it. The demo cost isn’t too bad but  I had some horrific quotes alone with some decent ones. Once the house has gone it will be a nice flat level site on a pleasant cul de sac with a handy drainage connection and services to hand. 

The expensive and frustrating part has been the bat surveys. Survey Nr 4 tonight after three blanks. Fingers crossed nothing appears tonight and that the little buggers haven’t made a late return and shit all over the ecologists sheet that he laid out in the loft 2 weeks ago. 

 

This is something that I have been itching to do for many years and I need to get the monkey off my back. It’s just that my timing has turned out to be very poor. I know that the new houses won’t be as well insulated and efficient as many in here  but with my skills and a reasonable array of decent tradesmen contacts I hope to be able to offer one new house to the estate that is built to a far superior standard and to have a modern reasonably efficient house for myself for the next few years to take me to retirement. Then the plan is to renovate the house that I live in now whilst living in my new one. I will decide then what the next stage of my life’s journey is. 

[Radian]

43 minutes ago, Canski said:

the house is 160 years old

Didn't look it in the photo! Good luck with your project.

[Mr Punter]

It seems a shame to demolish and build from scratch but the current building does not give you much option unless you  slice off the right hand end, refurb and build plot 2 relocated slightly.

 

I have never found that replacing 1 with 2 works out moneywise but you must have done your sums.  Be careful regarding CGT, CIS, VAT and CDM.

[Canski]

Thanks Mr Punter

 

The attached drawing shows why its not really feasible to keep the existing house. I realise that  there will be some CGT to pay on one of the plots. CIS not a problem my builder is CIS registered. I am just the client. VAT I think is pretty clear as the builder will be zero rating their invoices to me and I'm on it with the CDM (I think). One benefit is that there is no CIL's to pay in this area but all the paperwork needed to be submitted anyway.

Southbank Proposed.pdf

[Temp]

As you are trade hmrc might want income tax rather than CGT? Eg if they think you are making a living as a property developer. Might need to seek advice.

 

If you decide to rent out the other house beware that you might have to repay the VAT. A house built for sale is treated differently to one built and rented out. There are ways around this but people have been caught out.

[Canski]

9 hours ago, Temp said:

As you are trade hmrc might want income tax rather than CGT? Eg if they think you are making a living as a property developer. Might need to seek advice.

 

If you decide to rent out the other house beware that you might have to repay the VAT. A house built for sale is treated differently to one built and rented out. There are ways around this but people have been caught out.

Thanks for that Temp. I have run it through with the accountant previously but will check again. The plan is to sell the second house not to rent it. It now seems I have more time to plan due to the re-emergence of bats last night after 3 blank surveys. 😞