The brief from the client was to liaise with our planning and design department to find a property that needed renovation and the potential for an additional building plot on site. This was by far one of our most challenging briefs as we identified at site and before we had chance to fully analyse the potential for a successful planning application for an extra dwelling on site. The client purchased the property and the renovation was a relatively easy one. We simply added a third bedroom to maximise the profit returned by moving the kitchen to the conservator which we demolished and re-built as a timber frame. The true challenge arose when the garden to the side measured only 9 metres wide (TBC). We needed to allow for a suitable gap between both adjoining properties. This would leave us in the unfortunate position when we would not only need to design a bungalow that was only 6 metres wide (TBC) but to be able to convince the planning department that this development would be within policy. We came through with the goods and continued our 100% hit rate and planning was approved. Subsequently a 2 bed bungalow with disabled access and a disabled wet room was constructed by us and sold prior to completion of the build. Purchase price £125,000 Jan 2015. Sold March 2017 £180,000. Rental income £14300, cost to point of sale £33,987.96 including renovation cost, estate agent and legal fees. Pre tax profit £38412.04 23% return. The dwelling in the gardens figures are as follows. Build cost £89,488.43 and sold April 2017 £177,000, pre tax profit £111,014.80 a 77% return. The total return for the site of £149426.80 48% over 2 years 3 months. Inc all planning fees, council tax and borrowing.
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