(1/3) When people say projects take a long time they are telling you that you should consider some of the things that could go wrong to avoid surprises. However, surprises in a refurbishment are almost unavoidable.
Let's see why:
Lease:
If you live in a building that requires permission from the freeholder or the community to carry out a refurb, you should understand :
- what the sign off process is and how to deal with it efficiently
The more complex, the bigger team you could need, the longer it will take and the more expensive it will be
I have seen people purchase properties thinking they could refurbish quickly to find out that the approval process can add many months.
- cost of the building license
I know it may sound impossible but i have worked on several projects where the license cost has taken such a significant amount away from the project budget that it has jeopardised its viability. (In one of our projects the licence added the cost equivalent to 20% of the construction value.)
- design restrictions within the lease.
Some leases have absolute clauses (i.e. you cannot carry out any type of work without written permission ) and this makes the negotiating of the building licence, restrictive and expensive. Be mindful.
- construction restrictions such as working hours , use of common parts, scaffoldings etc
All the above can add cost and time to your project. (Not only in terms of design & legal fees but mortgage & construction costs )
For instance, should your contractors not be allowed to use the common parts of your building and be required to erect a scaffolding. This will slow down the access to and from site extending the programme ( scaffolding hire+ council license+ longer programme)
Another example would be restricted working hours. Some freeholders agree to quiet works to be carried out on weekends, others don't and the latter will add time.
-conclusion:
Pay attention to what you agreed at the time of signing your lease and be prepared. If you are looking to buy, take time to ask as many questions as you can about this topic through your solicitor.
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