The trend for new basements is spreading across London as many home owners are taking advantage of this feature to extend floor space and to increase the value of their existing property.
According to planning data from Hammersmith & Fulham and Wandsworth Councils and as reported by the Financial Times, building applications for basements have risen 42 per cent and 34 per cent respectively from 2013 to 2014. In the same period, average house prices in both areas rose more than a third.
By purchasing a property and excavating a basement and then reselling it is a excellent way to make large financial gains and is a large part of what many property developers are currently doing.
There are many pitfalls that can be advised as well to maximise return on investment, simple things that need to be taken into consideration, ease of access for contraction works to how much light it is possible to achieve in the basement, through to how to obtain planning consents.
Premier Basements can help and guide you in this field, due to the amount of experience we have. We have a track record of excavating basements, some of which are shown on Channel 4’s programme “Double your house for half the money” presented by the popular Sarah Beeny. This programme is geared around obtaining the maximum return on investment.
We are currently filming for the 3rd series. On series 2, a ground floor flat had a value of £440,000 and after an investment of £170,000 it was worth in excess of £800,000 making an profit of £190,000 in just a few months.
We also undertake joint ventures in certain instances with property developers and home owners, where there is a joint risk/reward contract in place. Please contact us to discuss your ambitions because that’s where Premier Basements can come in. We have created dozens of stunning basements and worked with such a variety of different clients, we are now able to confidently offer a partnership with budding property developers.
One scenario that works well is, after an independent appraisal of the property for basement development, we would then carry out the work. When the new basement is complete and the property has been sold, we would split the difference of the initial appraisal price and the final selling price with the partner developer.
So don’t let a lack of financial resources hold you back from taking advantage of this property development opportunity.
Please get in touch with us by filling in the form below and let’s start talking.