Project overview - recap

OK. I had some feedback from "my readership" some time back. 

Admittedly I have been a little "all over the place" with my posts and the coherence and understanding of the narrative and overview may have got lost... 

I had therefore promised to give an overview of what the scheme/ project is all about.

Here it is in key points:

- I trained in architecture, but am working in Fashion... However this is a serious investment project that utilizes my "under-utilized" and hopefully not too rusty architectutal skills. 

- I have done a couple of previous investments/ renovation projects in the last 7 years. ( including a large loft space 2mn from brick lane which I really enjoyed - some details in previous post here ) ( might add further project in a future post as well)

- this latest investment is the first time I join hands with a co-investor. Its 50%-50% but I am on the ground so the performance anxiety is on me!

- we had been looking for a project for a long time made a lot of research... and countless aborted acquisitions/ outbidded offers took place ( auctions and agents) over the year prior to purchase of this unit. ( more info on the auction action here )

- this house was finally bought at auction in June for a purchase price of just above 1m GBP ( 1.1m after all related coats like tax and fees)

- its in bad shape, but the location is very unusual and unique; tucked away from the street and located right in the middle of adjacent gardens...and this is on one of the best and most expensive streets of Hackney, an "up and come" or "up and coming" (depending on how forward thinking one isl) part of London that without doubt will rival Islington within a couple of years. ( or maybe already does for the ones in the know) 

- the original house was 1300 sq ft ( approx 120m²) with a large garden but we have successfully obtained an additional 2000sq ft (approx 180m² ) though planning with hackney council. Resulting in a very large single house with a garden. ( and more info on the planning process here )

- post planning we had an offer from another  developer which could have given us a 6 figure sum clean profit... But wisely or foolishly we believe there are more rewards to be had by pulling through the project ourselves.

- we are now in the process of doing the basement work which is the most complex and fraught part of the job. A huge amount of earth needs to be excavated and the entire existing house supported on new foundations and a steel structure. See last post here

- phase two of the works will be, complete new electrics, new central heating/ underfloor/ complete interior decoration/ structure. New above ground extension. Green roof to extension. Glass floors/ skylights, kitchen, bathrooms ,  landscaping. And and and....

- estimated total cost of works +associated expenses : approx 650.000 GBP ( very much hoping no surprises here. )

- expected resale.... I dare not say at this stage ... Not wanting to jinx it !!!! ( but you may register for email updates for when I do dare!  - no worries, emails not used for any other purposes or third parties.)

On another note:  Am thrilled to say that we crossed the 1000 views about a month back, and although I am principally doing this blog for the sake of it, it is nice to see the interest generated.

I hope i have not missed any key points..... Please do not hesitate to ask me questions on any aspects of the project or any property matters in general - I love the subject and will always be happy to respond to the best of my knowledge. 

No idea what to post as picture with this lenghty and slightly dry post !?

.... OK three further in progress visuals/ sketches.

Serious steels - progress update.

Still no recap this time around. Apologies.. Next post for sure! 

But a site visit today, and I am happy to announce that we have had the first steel installed; effectively supporting the entire front facade of the house!

I have to say the boys on site are doing a fantastic job in very difficult (and cold!) Conditions.

The entire length of the side wall is now underpinned by concrete, and they have also started to make the rear concrete shell of the basement in the garden. Not bad for a bit more then a month on site!

This is our front wall , with 3 temporary support beams the 4th that will stay (aligned with wall)

An inside view of the same steel from new  basement level ( yes joists and floorboards have been cut)

 

And now internal view from ground floor level

And the start of the basement at rear extension into the garden 

Rear view. Not the overgrown romantic aspect anymore. 

Slightly less glamorous pictures this time round.

Its been a tumultuous week.

Finalisation of contract with the basement contractor.

Neighbours calling regards party wall demolitions.... Last minute agreements..... But  thankfully diplomacy prevailed.

On the one side of our narrow access pathway, we have kindly been offered to use some space from the neighbouring garden....

And on the other we managed to gain an extra 30cm by negotiating the removal of the meter high party wall....

Which we will of course rebuild in due time!

This means we now have a 1.4m wide pathway to the site which will allow the contractor to use more substantial digging machinery.

Gaining time and minimising headache!

The clearing up of the site has started in preparation for the heavy duty work ahead.

We are talking about:

- the removal of approx 300 cubic metres of earth - construction of a 30m long concrete shell,
- waterproofing and associated drainage, water pumps etc
- underpinning of the entire existing (ground plus one) house (chimney stacks etc), on an entirely new steel structure underneeth.
- over 1600 sq ft of space below ground level plus sunken patios for light, access to the garden ventilation etc.

Let the adventure continue.....

A magical architectural promenade leading up to the magnificent palace! 

The view of the impressive side return patio! 

The luxury guest suite ! 

The nanny studio? 

And the grandiose landscaping.

Call taken. (For the better or the worst)

It has been a very difficult decision.

But finally, after a couple of offers and counter offers, we decided against walking away with a six figures clean profit.

Without going into detailed maths on the project, in terms of returns this would have been a 15% return on investment over a 6 months period. (So 30% annualised)

And admittedly, the future may prove us to have been foolish not to accept and walk away! (Hopefully not of course)

But we do believe there is more mileage in the property: Although we are looking at another year (and a lot of work to be done) before putting the final product on the market, we hope to double the return on investment again by the time we exit. 

The big "IF" is the result of the elections, and the threat of the "mansion tax" that could serve a serious blow to the resale of any property over the 2m mark.

But this is not not for us to decide.... The call has  been taken and focus is now single mindedly on the long hard slog ahead!

The ups and the downs of the actual build!!

The digging is to start in the next week and we are just getting mentally ready!

Soon more to follow..… oh by the way... The picture is our front door!

It all depends on the price...

Question is.... If keeping on the analogy of gambling I had used in my previous post;

Should we keep the chips in or cash in and go. Hunting again!?

The architect in me is of course screaming to detail, flesh out, and  implement  the scheme on the ground to enjoy the satisfaction of a job well done.
Walk through the spaces that have been envisioned in my mind, before finally putting a finished product on the market. (While hopefully making a further profit)

But purely looking at it from the perspective of a cold blooded developer the call is less clear cut.

Nobody knows too much what direction the market will take over the next year, and there is a lot of work to do!

Thankfully the Labour opposition party has clarified a couple of days ago their view on their so called "mansion tax"... Which for properties valued between 2m and 3m would only be 250gbp a month.... A lot less then originally anticipated ...  the rumours that were creating  uncertainty... And of course the market hates uncertainty of policy.

So good news there!

In the mean time, no harm testing the market and see what happens.

So therefore, it is now discretely on the market with specialist development agents.... Since yesterday.

And today we have the first viewing.

It all depends on the price! 

Glass is sexy.

Its not all put down in a very linear fashion am afraid.... But I thought I should share.

Today I visited "the cantifix guys" basically they are some of the best in London for structural glass structures.

He did quite early on in the conversation mention that they are "not cheap" ... Which  I was not really surprised about, but for him to be so upfront about it means I have started to fear the initial quote I am going to receive by the end of the week!!!

We are looking at inserting a lot of glass, walk on glass floors and glass skylights and large glass windows, and and....

I know I did not mention yet but in effect we are planning to dig a rather grand basement floor (approx 1400 sq ft (or approx 120sq m ) ... And unless we get serious amounts of light in there, its unlikely we will fetch a good return on investment!

So two 3 large lightwells and lots of glass is the answer!
Very early sketch and some great glass use lightwells in contrast to Victorian fabric below. (Apologies I should and would like to give references but these are some screenshots collected over the last few months) 

I guess I don't really need to mention that I like glass.