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!
Land purchase price £60,000 (covenant fee)
New build cost £205,000
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