Can I turn my 2 bed flat into a 3 bed shared accommodation?

by Readers Question

11:09 AM, 22nd March 2015
About 4 years ago

Can I turn my 2 bed flat into a 3 bed shared accommodation?

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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. Can I turn my 2 bed flat into a 3 bed shared accommodation

Is this classed as an HMO, fire precautions etc……

Many thanks

Antoinette Cunningham



Comments

Mark Alexander

11:11 AM, 22nd March 2015
About 4 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.
.

Robert Mellors

15:24 PM, 23rd March 2015
About 4 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?

Antoinette Cunningham

15:48 PM, 23rd March 2015
About 4 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......

Robert Mellors

18:44 PM, 23rd March 2015
About 4 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).

Antoinette Cunningham

19:16 PM, 23rd March 2015
About 4 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.

Mark Alexander

19:20 PM, 23rd March 2015
About 4 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."
.

Antoinette Cunningham

20:14 PM, 23rd March 2015
About 4 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.


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