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The Benefits of Investing in Grade II Listed Properties

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    Is it Worth Investing in a Listed Property?

    Listed properties represent an exciting buy-to-let opportunity. Investors get the chance to own a piece of history and essentially become custodians of an important and culturally significant building.

    While these designated buildings are appealing and have the draw of allowing an investor to acquire a unique and character-filled property, some find the extra rules and regulations associated with listed buildings to be intimidating.

    However, these rules are designed to protect and conserve the building, not completely prevent any work from being done. Taking the extra effort and time to refurbish a dilapidated listed building properly can offer plenty of rewards for the investor.

    So, let’s examine some of the benefits to decide if investing in a listed building is worth it.

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      What Are Listed Buildings?

      Properties of special historical and cultural importance are protected with listing status. Doing so limits the alterations that can be made to the building and preserves their heritage for future generations.

      There are three possible categories:

      • Grade I: This is a building of exceptional interest.
      • Grade II*: This applies to significant buildings of more than special interest.
      • Grade II: This final category is for buildings that are of special interest.

      Most listed buildings are historic; the older a building is, the more likely it is to be listed. However, some modern buildings have also made the cut. Almost any structure, including churches, bridges, castles, and telephone boxes, can be listed.

      When a building receives listing status, it cannot be altered without special permission from the local planning authority. When the alteration is permitted, the owners of the building must adhere to certain rules, such as the requirement to use specific materials or techniques.

      So, while it may take longer and induce extra paperwork and costs to renovate a listed building, it is still very much possible. This is why many buy-to-let properties for sale consist of listed properties renovated to create modern, luxurious apartments.

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      Case Study - The Mill, Liverpool

      Heap’s Rice Mill, located on Pownall Street in Liverpool, was founded in the 18th Century by Joseph Heap. This Grade II listed building on the edge of the city’s up-and-coming Baltic Triangle district is one of the few surviving warehouse complexes in the area. This iconic building is currently being delicately refurbished to house a variety of luxury residential properties.

      As mentioned, some investors worry that getting involved in a listed building will limit the type of upgrades that can be made. However, The Mill proves that completely modern and high-spec renovations are achievable. The property will even have luxury facilities such as a state-of-the-art spa and rooftop terrace, showing that possible alterations to listed buildings are not as limited as many may think.

      The same can be said of energy-efficient upgrades. Many investors worry that a listed building will not be energy efficient and that installing eco-features will not be permitted. But, it’s not uncommon for listed buildings refurbished as residential properties to have green upgrades sensitively fitted by savvy developers.

      The Mill will benefit from low-carbon technologies such as solar panels, air source heat pumps, a smart boiler system, and a mechanical ventilation heat recovery system.

      When renovating the property, the developers have adhered to the building regulations surrounding listed assets. After completion, the management service will fully manage and maintain the property within the given regulations, so investors in these apartments do not have to worry about these restrictions.

      Further Reading: The RWinvest UK property investment guide will help you explore apartments for sale in Liverpool and the latest market trends.

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        Should I Invest in a Grade II Listed Building?

        Listed buildings are rare and, as such, are highly sought after. Many would consider it a privilege to own properties of such historic and cultural importance.

        Another advantage is that the property will be unique. This is especially true at the moment as the original features and character of period properties are currently considered fashionable among buyers and renters. In restored buildings, how stylishly these features have been incorporated into the modern renovation can become a distinctive selling point.

        Apart from the value and unique selling point of owning a significant property, research also points to tangible financial benefits. By definition, listed buildings are few and far between, and this lack of supply relative to demand can push up values.

        For these reasons, listed properties have the potential to appreciate in value faster than other homes in the same area, making them attractive long-term investments.

        To learn more about UK property investment, check out some of our recent buy-to-let guides:

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        Author

        Jessica Ferris

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        Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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