Notes to accompany 2006 building conversions
- 1. Notes to accompany 2006 “Building conversions” Slides 1-2: The basics. Conversion is to change use or function. Rehabilitation is to bring back into use something which has become redundant. More problems arise from conversion/rehabilitation projects than form new build due to the uncertainties associated with working with existing buildings and structures. So long as the risks are understood and allowed for, conversion/rehabilitation can be a good idea. Slide 3 Why convert a building? Why not just knock down an old building and build a new one? You must be able to answer this question if there is to be any chance of success. Decision on restoring old buildings are often irrational. There is nothing wrong with irrationality, but it is nearly always expensive in effort and money. Be aware of this. Try to be objective in all decision making. Slides 4-5 Costs for work on old buildings are often impossible to establish in advance of the building works. Even a conscientious builder cannot price exactly when he cannot see the foundations or the interiors of the walls. This means that conversion jobs are financially high risk. It is possible to make a return on the investment, but this is often achieved through the owner putting in much labour at zero cost, which makes jobs look cheap in money terms, but they are still expensive in life costs. There is also the calculation of how much could the owner have earned in the same time, doing an earning job. If this is higher htan the cost of paying a builder, then doing it yourself is a high cost option. Slide6 The Hill Paul building is a case of a successful conversion of a former textile mill into flats. However, in itself the main building has not covered its development costs. But by retaining the old building, the developer won planning approval for building a number of additional new houses on the site, which were profitable. Without the conversion, they would have been refused. Slide 7 There is a surprisingly weak residential market for converted buildings. People like to make their own conversions, but they are less likely to want to buy someone else’s conversion. They won’t like the personal compromises that were made. This means making a return on the investment can be very difficult.
- 2. Slide 8 As in the case of the Hill Paul building, conversion may allow you to develop in an area where planning restrictions would normally stop such development. If a company wants an office in a particular historic location, conversion of existing buildings may be the only way they can develop the needed floor space, even if financially they will lose on the cost of the building. The increase in business income makes it worthwhile. With domestic conversions there is no income unless the property is rented out. Slides 9-11 Emotional commitment. People convert buildings for reasons that make no rational sense. If a clif erodes to the base of a building, the building is doomed. Moving it a short distance will be hugely costly and eventually the cliff will catch up with it. But we do it none the less. Such projects are fascinating to be involved with, but not financially. Slides 12 If you repair an old building, you do not have to bring it up to current Building Regulation standards (yet…). But if you convert a building into new use, say a farm building into a house, the “new” house will have to meet current standards and this can be hugely expensive, particularly in relation to insulation and fire safety. Slide 13-14 Conversions from non-residential to residential has large, expensive fire safety implications. Similarly conversion from two storey to three storey residential accommodation has big fire safety implications, which are often ignored. If they are not met, the building owner could be liable to prosecution and the house would be unsellable. Slide 15 Unsuitability or lack of utility services can be a financial killer of a conversion project. Bringing electricity, drainage and water to a remote building can cost more than all the rest of the project put together. Slides 16-20 Designing a conversion follows the same route as designing a new building, with the addition of dealing with unknown problems. It is even more important to have detailed contract s drawn up for a conversion project than for a new build project. You must always be able to refer back to what was originally agreed, as things will change during the course of the project.