The Project

I bought the house in Salmen Road because of the plot of land to the side of it, and had always planned to build another house at the end of the terrace.

I bought the Salmen Road property in August 2015 and immediately looked for an architect to draw up the plans. From a recommendation, I appointed Office S & M and they got to work on the planning application. 

 

We submitted the application at the start of December 2015, but with an over-burdened planning officer and lack of resources in the planning department, we finally got the approval in October 2016! So it was 10 months rather than 10 weeks, but we finally got permission to build a three bedroom house.

We then spent a few months completing the detailed design, getting other experts and engineers involved, designing the interior, and pulling together a comprehensive tender pack. We had a main contractor lined up but unfortunately he had to pull out so we went back out to tender, and started the build in May 2017. The build went relatively smoothly and we achieved practical completion at the beginning of December 2017. Tenants moved in in Februrary 2018.

My key learnings were:

  • Sort development finance early!

  • Ensure any legal issues are sorted before build starts (I had to negotiate a large fee with Newham council for removing a restrictive covenant, as well as pay legal costs)

  • There are always more costs than you expect - architects, engineers, tests, warranties, finance, legal, and more

  • Have a team you can trust and delegate to - this will ensure success if you are limited on the time you can give

It has been a fantastic project. I am very happy with the finished house and have thoroughly enjoyed my first full development project. Here's to the next one!

Before and after (and during)

Land purchase price £0

New build cost (estimate) £150,000

Estimated value £450,000

Land purchase price £60,000 (covenant fee)

New build cost £205,000

Architect £20,000

Professional services £27,000

Legal costs £27,000

Finance costs £33,000

Other fees/costs £1,000

TOTAL cost £373,000

Value 2018 £495,000

My Property & Home develop properties in East London, purchasing in 'up and coming' areas for greater value increase and good rental demand from young professionals. Once refurbished, all My Property & Home's properties are kept for rental income and capital growth.

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