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June 2004

 

 

Liz Hodgkinson on using your loft space as an investment 

Up in the roof       

You’ve got a loft?  Maybe it’s used for storage? Think creatively and you could convert it into a self-contained flat and become a landlord. This is what Sally Grant did when she moved to a three-bed cottage in North-West London three years ago.

“When I bought the property, there was a half-converted attic 30 feet long and six feet wide, used as a junk room,” she said. “It had a staircase and three Velux windows, but it was draughty and had no heating.

 

“I had no idea that it could be a potential money earner until an architect friend came to visit and thought the space could be converted into a self-contained unit to rent out.

 

“I couldn’t see it at first, but my friend drew up very clever plans. Now the loft has a mini bathroom with shower, basin and loo, a tiny kitchen with a microwave and mini-fridge, and a fold-down table. There was just room for a futon, and storage is under the eaves. There’s even a washing machine. Everything is in miniature and although it wouldn’t suit a six foot six man, it’s ideal for a small woman.

“My flat was right at the bottom end of what agents would handle, and some wouldn’t take it on,” she says. “It is also at the outer limit of what’s considered a good location in London.”

Fortunately, this did not deter Sally. “In the end I had to make my own amendments, as the standard tenancy terms weren’t quite suitable for my space.” Sally was quoted eight per cent commission to the agent, to be paid upfront.

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Liz Hodgkinson is a prolific author and journalist contributing to many publications. She has written over 40 books on a wide variety of topics and has a background in national newspapers. She now falls into the 'later-life' age category and in recent years has started writing for this 'older' market, and contributes to Saga magazine, among others.

Liz has two sons and four grandchildren. She is divorced and now lives in London and on the SouthCoast. She has written three books on property matters and her interests include snooping round other people's houses and viewing showhomes.

 

“I discovered I would have to have a student, otherwise I would have to pay extra council tax; an amount not recoverable in extra rent. And because the flat is part of my own home, the rent had to be an all-in sum, with no separate utility bills apart from telephone.”

Sally discovered she would be allowed £4250 a year tax-free under the government’s Rent-a-Room scheme, as her flat does not have a separate entrance, and is considered part of her home.

 

 

Because she is living on her own, she insisted on a female tenant. “I was very nervous indeed, and knew I had to be extremely careful with references. I had to make it a condition that I did not want somebody in a relationship, as I did not want boyfriends staying the night.

“As the flat is part of my home, even though it has its own front door, the whole thing had to be geared around my own circumstances. As such, it could have been extremely difficult to find the right tenant.”

But Sally had the most amazing stroke of beginner’s luck. An ideal tenant was found right away, a quiet, almost invisible 24-year-old Japanese student, who took the place for a year, at £600 a month rent. Then she renewed for another four months.  

“So far as I know, my tenant hasn’t had one visitor, ever,” Sally says. “I often don’t know whether she’s in or not. When she comes in, she shuts her door, and that’s it. And she never makes a sound.

“Although I had to have a student because of the council tax complication, I didn’t want an 18-year old I would have to mother. Now, sadly, my ideal tenant is leaving, and I shall have to try and find another one equally ideal, which could be hard, as the conditions have to be so specific.”

Sally’s loft conversion cost under £15,000, and will definitely add value to the house. “The job was made possible by the fact that manufacturers are now producing miniature units,” she says. “The bathroom came from the Ideal Standard Studio range – full-size units would never have fitted – and I went to Ikea for the rest of the furniture and the mini-kitchen.”

Ikea have started to specialise in furniture and fittings for tiny spaces, for just this type of market. Their spokeswoman said: “To meet a growing need, we are now designing furniture that can adapt, change, fold away and stack. We are focussing on the multi-function room.”

The study, Britain Towards 2010, by Richard Scase, shows that the single-person household is rapidly becoming the predominant type. As such, we are living in ever-smaller spaces, but most people nowadays want to be self-contained.

Could it be that we’re giving the Parisian artist’s garret a modern twist, with scaled-down furniture to fit, and Ikea units replacing bohemian squalor? After all, a new French law says that even artist’s garrets must be self-contained.

 


 

laterlife interest

The above article is part of the features section of laterlife.com called laterlife interest. laterlife interest contains a variety of articles of interest for visitors to laterlife.com written by a number of experienced and new journalists.

It includes both one off articles and also regular columns of a more specialist nature such as healthwise, reports from the REACH files, and a beauty section called looking good in later life.

Also don't forget to take a look at our regular IT question and answer section called YoucandoIT by IT trainer and author Jackie Sherman.

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