Convert house into flats

[EarPhones]

I live in a 3-bed semi house on a residential mortgage. Was thinking of converting the house into 2 flats. Convert the loft into an open plan kitchen and living room for the upstairs flat and rent it out.

I would like to continue living in the ground floor garden flat and keep the freehold for the property. Not sure how the mortgage will work and things to watch out for?

I think first thing you will need planning permission , it might be easy or a non starter.

A lot of local authorities now routinely refuse planning permission for house/flat conversion. Puts too much pressure on local services, adds to parking and traffic congestion and changes the character of a neighbourhood if too many single family occupancy properties are changed to multi household properties. Your authority might still allow it, but many don’t.

I think you need to check with both your mortgage provider and your home insurance company too.

Eventually, you’ll need a residential mortgage for your place and a btl for the rental. In the meantime, if your bank doesn’t want you to convert on the residential mortgage, you could look at things such as bridging loans. A good mortgage adviser should be able to help.

Look at your local planning portal and don't be afraid to ring them for a chat. Off the top of my head, you need to think about stuff like sound insulation (Eg putting a living room next to your neighbour's bedroom could be a nightmare), meeting parking requirements for planning, have you got bin space, would you do a communal hall area or 2 separate front doors. Are there more stringent building regs for room height for kitchen and main living area compared with bedrooms etc? Obviously factor in fees, additional council tax, decrease in value of your own property if you were to formally separate them into 2 properties.

It might be logistically & financially much easier to take in a lodger who just happens to have their own bedroom, sitting room, kitchen and bathroom in the shared house.

@Murmurur wouldn’t that be classed as an annex and illegal if you don’t have the permission but stick a flat within your house?

Quite possibly. Just thinking out loud.

Thanks. Yes assuming planning application will be approved. I understand that part of the process.

I have a lodger at the moment but want my privacy.

Have parking space for 2 cars and front door is on the side, not facing the road so could have stairs to first floor. I have about 40% equity so my mortgage will be minimal compared to now. I've tried lodgers twice now and its not for me. Really love my place and don't want to move and will be happy living in just downstairs space.

Living room for tenant will be top floor (second floor loft extension). Not next to neighbours first floor bedrooms.