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February 28, 2005
basement value
we are buying a house, 4 story + english basement, in Park Slope with another couple. They are taking the top duplex. We are taking the bottom. We also want to "purchase" the basement since it's connected to our apt. and has a kitchenette and bath which we can use as a living space for an au pair.
It is a pretty crummy place right now but of course is of resale value, more to our apt. than theirs. (there is common space where the boiler etc... is and we must figue that in too).Any ideas on how to value this space? What % of the total value of bldg? Or is their some other way to figure it?
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I'm afraid I won't be of help to you...but can I ask how that works for two parties to own two parts of the house? I assumed buying with someone else would be impossible because the bank wouldn't let one party own only a part of the house. I thought the whole thing would have to be owned by one or the other. Is that not true?
Posted by: bklynprof at February 28, 2005 10:56 PM
Well, the purchae itself is fairly straighforward. You can get a co-mortgage with as many people as you like (in this case, my husband and I are one buyer and the other couple who are not married are two more). For the moment we are "splitting" it, but by the time we close we hope to resolve this basement issue. My husband and I will be paying somewhat more but that's cash, not affecting mortgage. THEN, right after we close, we will turn it into a condo. The house has two separate, discreet entrances so it's easy. Hope that helps.
Posted by: Alexandra at March 1, 2005 10:46 AM
Yes, that is fascinating and helpful. Had no idea such things were done. One more question: so once it's a condo, the mortgage payments by each couple will go only to their space? And does the bank have to approve the condo-switch? Thanks again.
Posted by: bklynprof at March 1, 2005 1:44 PM
Do you mean a cellar?
By a cellar I refer to a completely underground space with no windows. You may have acess hatches and a stair leading down but that's all.
If it has a kitchenett how does the person enter the unit?
Posted by: GreenDog at March 1, 2005 5:47 PM
One thing you should consider is that the kitchenette and bath in the cellar may be a Buildings Dept violation, so you need to find out if it's legal or not. Generally, cellar space is useful only for storage, although some people create "rec rooms" with the typical ping-pong table down there. I've also seen home theaters in that space. But it is probably illegal to put an au pair or any other sentient being in the cellar.
This could be an issue for you when your bank inspects the place for the mortgage. And it could be an issue for your insurance. If the kitchenette is illegal, then you will have a problem collecting on an insurance policy if, for example, your au pair starts a fire down there.
Plan ahead. Check on all this before you decide to pay money for that space.
Posted by: Anonymous at March 2, 2005 5:25 AM
The previous poster is correct. A cellar is not living space. You must have windows and 2 forms of proper egress to have legal living space. NYC Buildings Department defines a "Basement" as being 50% or more above curb level, below that is a "Cellar."
And be aware if you create a rec space or home theatre you must have proper ventilation and have Radon levels tested. Radan gas is tasteless, odorless and a major health threat. More than 20,000 Americans die of radon-rlated lung cancer each year.
Posted by: GreenDog at March 2, 2005 7:54 AM
Thanks for your input. It is not a cellar. It's an "english basement" i.e. it has two windows and egress both through stairs leading to the apt. above and through a front door. The windows are about 50% below street level so it's not very sunny. But it's perfectly servicable as a living/recreating space. And I do believe it's totally legal. I'm just wondering how much it''s worth paying the "extra" for since, all that being said, it is a basement.
Posted by: Alexandra at March 2, 2005 11:38 AM
IMHO, An English Basement is worth almost as much as a walk in garden floor.
By walk in garden floor I mean a floor that is below the Parlor but still almost completely above ground and there is often a "cellar" below it.
The difference in price between an "English Basement" and a "Garden Floor" is mostly explained by the loss in square footage to the mechanicals.
Just look at the new construction Condos that have 1st floor "reverse duplexes." The price per square foot for those units is almost the same as any completely above ground unit. Granted in most cases the developers dig out to create light wells in both the front and rear.
Obviously this is not a simple calculation. Perhaps the Agent who sold you the house could provide you with some info. But honestly, to avoid conflict with the other buyers I strongly suggest you hire an appraiser to give a professional estimate. Perhaps you should each hire one. It wont cost that much considering the recriminations that may follow in the future if you don't.
Posted by: GreenDog at March 2, 2005 3:35 PM
Yes, you're probably right about hiring an appraiser.
Thanks for the good advice.
Posted by: Alexandra at March 3, 2005 11:47 AM
Even though you may have a "basement" and not a cellar, your building may have topped out the FAR with the 4 floors above. Even though practically speaking you could use the space, why would you pay for something that the DOB would deem illegal? Again, it may be legal, depending on the zoning, but you should check before plunking down money.
Posted by: Aida Stoddard at March 8, 2005 9:42 AM
What's the FAR?
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