Can I turn my 2 bed flat into a 3 bed shared accommodation?
Hello all,
I own the freehold of a block of 4 flats in Southport town centre. I have planning permission to turn the top and bottom flat into 4 flats but have been advised by an estate agent not to poor any money into small town centre flats as there are too many already. I wonder if it makes sense to turn the bottom flat (tenants are leaving) into a 3 bed shared flat and put an extension on for 2/3 more rooms.
Is this classed as an HMO, fire precautions etc……
Many thanks
Antoinette Cunningham
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Member Since January 2011 - Comments: 12217 - Articles: 1412
11:11 AM, 22nd March 2015, About 11 years ago
On the basis that you own the freehold and have planning permission I can’t see the problem.
You should take up the HMO licensing question with the local authorities.
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Member Since October 2013 - Comments: 1311 - Articles: 10
3:24 PM, 23rd March 2015, About 11 years ago
Yes, it would be a HMO.
There should be no problem letting a 2 bed flat as a 3 room HMO if no extension is needed (perhaps just an internal stud wall and fire doors etc). BUT as a HMO there are far more responsibilities on the landlord, and more costs, and more tenancy management, so is it really worth doing?
Member Since March 2015 - Comments: 8
3:48 PM, 23rd March 2015, About 11 years ago
Thank you for your comments.
I think it is worth doing if I can put an extention with 3 further rooms on and make it a 6 bed HMO……
Member Since October 2013 - Comments: 1311 - Articles: 10
6:44 PM, 23rd March 2015, About 11 years ago
Reply to the comment left by “Antoinette Cunningham” at “23/03/2015 – 15:48“:
Yes, definitely the more rooms you can fit into the property the better financially, BUT make sure you are aware of the space standards for HMOs (it’s different for different layouts, room numbers, and whether there are also communal rooms or not). Also, the number of bathrooms goes up, and the type of fire alarm system changes. Also factor in that the more people there are, then the higher the amount of tenancy management time you will have to put in (not just in room turnover, but also sorting out disputes between your residents).
Member Since March 2015 - Comments: 8
7:16 PM, 23rd March 2015, About 11 years ago
The whole property, all 4flats, are on 1 title. Would that be a problem and would it be beneficial to split the titles.
Member Since January 2011 - Comments: 12217 - Articles: 1412
7:20 PM, 23rd March 2015, About 11 years ago
Reply to the comment left by “Antoinette Cunningham” at “23/03/2015 – 19:16“:
If all four flats are self contained then you may well add signifinant value by splitting the titles.
Extract from this page below >>> http://buytoletconveyancing.co.uk/
“Creating multiple leaseholds from one freehold property, e.g. a property which has been converted into flats. This can often enhance values as the market for individual leaseholds and the reversionary freehold interest in a building are generally greater than for a large single freehold.”
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Member Since March 2015 - Comments: 8
8:14 PM, 23rd March 2015, About 11 years ago
Final question then. Would the value of the other 3 flats be reduced if the bottom flat was an HMO should I ever wish to sell them individually.