Advice on new utility connections for split residential and commercial property

[zeon04]

Hi everyone.

I need some advice about a property conversion and whether or not I need new utility connections for the residential part of the property and leave the old one in the commercial part.

The plan is to have the ground floor as a commercial unit and then 3 flats above it (3 storey building). To save some money I will probably just have water and electricity go to the residential part but do I need a new water and electricity connection for it?

This topic https://forums.landlordzone.co.uk/fo...y-into-2-flats, in the last post, suggests that with the right plumbing I can just use the current connection and then install sub-meters and include it in the rent.

But then what about the commercial unit? The business that will rent it out will want its own utility suppliers wouldn't it so I can't use the same connections can I?

Wouldn't that effectively mean that I would be choosing the supplier and then including it in the rent if I were to just use the current connections?

Any advice would be appreciated. Thanks.

[mk1fan]

My opinion is that any property (a flat is a property) that has any shared supply - gas, water and / or electric - has a significant drop in value as compared to a property that has dedicated supply.

Is is physically possible to split incoming services? Yes it is. If there is sufficient supply to maintain the minimum provision to multiple properties then yes it can work. This isn't always the case though and each service needs to be tested. I would [pay to] check this BEFORE works are assigned on a contract. That is, as part of the design work before tender.

You maybe lucky on the electrical front that the current supply is three-phase and only one extra main is required. That said, what commercial use do you anticipate? If thate requires three-phase then new services it is.

I would agree that extending gas up to the flats is not necessary unless they are decent sized 2-bed flats where a gas boiler is likely to be worth while.

As for water. The size of the incoming mains pipe is likely to be insufficent to provide enough flow. An upgrade of the existing to 28mm or 35mm and an additional matching supply might be sufficient.

What are your plans for the flats? If you are never going to sell them or use them for collateral then the 'bodge' of splitting mains may work if supply is suficient.

[zeon04]

Hi. Thanks for the reply.

The property is 3 stories. Ground floor is the commercial unit and the plan is to convert the 1st floor into two, possibly three flats. The 2nd floor will be its own flat.

The plan is to rent the commercial unit and the 1st floor out while living on the 2nd floor until cashflow is stable enough for me to move out and then rent the 2nd floor out as well.

I should split the utilities up shouldn't I? Leave the current supply for the commercial unit and setup a new water and electricity supply for the flats.

As for the 1st floor flats, they'll be single bedroom flats. Would each one require an electric boiler or heating if I choose not to run a new gas mains?