Certificate of lawful use as a HMO period required query?
3 years ago | 4 comments
Portfolio owner with short lease on flats conversion?
12:01 AM, 18th July 2023, 3 years ago
4
I am an avid reader of Property 118 and a large portfolio owner. I have owned a 3 bedroom flat for 23 years and I turned it into 3 separate units as soon as I completed the purchase.
I didn’t apply for planning permission. Although I feel I should be able to achieve an Established use certificate. The tenants have been paying Council Tax for 15 years.
My mortgage term ends in a year’s time. Plus my lease has only 63 years left. I would like to carry on letting the units.
Do you know of anyone who could help with the certificate of established use? The lender would have to take on a property with a short lease and no planning. I had the HMO inspector visit the property and he said it is not an HMO.
Another question I have is, the house is above a shop with only my flat above it. The shop owner owns the freehold. Is it possible to buy a share of the freehold?
Thanks,
Ralph
Tags:
established use certificate, how to buy a share of the freehold property, no planning permission, short term lease flat conversion
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
or
Related Articles
Help with choosing leasehold property?
3 years ago | 6 comments
What happens to unlicensed HMOs once S.21 goes?
3 years ago | 4 comments
Member Since August 2016 - Comments: 508
1:01 PM, 18th July 2023, About 3 years ago
Why not buy the freehold outright? Then rent the shop to the shopkeeper? You never know, he may be glad of the capital?
I can’t comment on the planning issue, others will.
Member Since June 2022 - Comments: 111
1:44 PM, 18th July 2023, About 3 years ago
If the floor Sqm of the shop is 25% or more of the total area of the property then Collective Enfranchisement is not an option.
Member Since September 2021 - Comments: 9
1:55 PM, 18th July 2023, About 3 years ago
Its not a conventional HMO its more of a s257 HMO. If it is a flat and you have done the conversion you will need 10years evidence but depending on the size of each unit it will not be worth formalizing the conversion because a s257 HMO would be easier to finance than small units of say 25sm each. There is also the issue that if consent was not obtained from the freeholder, the freeholder could come after you for breach of lease.
Member Since May 2014 - Comments: 271 - Articles: 2
9:11 AM, 19th July 2023, About 3 years ago
Reply to the comment left by RCJ at 18/07/2023 – 13:55
Without formalising the use it is a planning breach surely?
If your lender lent on a 3 bed flat then surely they are not going to be happy that it is now 3 separate units and you are also breaching your mortgage conditions – if I’ve understood things correctly.