Am I converting my new property into an HMO?

by Readers Question

10:43 AM, 4th February 2015
About 4 years ago

Am I converting my new property into an HMO?

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Am I converting my new property into an HMO?

I have just purchased a 2-bed terrace house with a tenant in place. There is one bathroom on the first floor and a kitchen on the ground floor. The tenant needs just the ground floor.

Can I put a shower room in ground floor and rent this to him and fit a small kitchenette on first floor and rent that to another tenant and increase my rental income?

The property situated in south west London. Is this legal? Do I need a planing permission? And if this is classified as HMO what basic safety regulation applies.

Thank you all

RezaHMO



Comments

Neil Patterson

10:50 AM, 4th February 2015
About 4 years ago

Hi Reza,

Definition of an HMO from the .gov site:

"Your home is a House in Multiple Occupation (HMO) if both of the following apply:

at least 3 tenants live there, forming more than 1 household
you share toilet, bathroom or kitchen facilities with other tenants

Your home is a large HMO if all of the following apply:

it’s at least 3 storeys high
at least 5 tenants live there, forming more than 1 household
you share toilet, bathroom or kitchen facilities with other tenants

A household is either a single person or members of the same family who live together. A family includes people who are:

married or living together - including people in same-sex relationships
relatives or half-relatives, eg grandparents, aunts, uncles, siblings
step-parents and step-children"

Do you also have a mortgage? A mortgage lender will not want you splitting the property and adding a kitchen.

You also need to check very carefully Building regs when adding a Kitchen.

Reza Ansari

11:54 AM, 4th February 2015
About 4 years ago

Thanks Neil for explaining HMO for me. No we have not any mortgage on the house.

Where can i get information about building regs .Note that i am just going to fit a kitchenette !

Kind regards

Reza

Neil Patterson

12:14 PM, 4th February 2015
About 4 years ago

Hi Reza,

From >> https://www.gov.uk/building-regulations-approval/how-to-apply

"4. How to apply

Contact a ‘building control body’ (BCB) to check the building regulations or apply for approval.

There are different rules in Scotland and Northern Ireland.
Where to apply

There are 2 types of BCB. It’s up to you which you use.
Local authority BCBs

You can apply for approval from your council.
Private BCBs

You can apply through a private approved inspector.

They’ll tell your local authority about the work. This is called giving an ‘initial notice’.
Choose a type of application

You must decide on the type of application for your planned build, extension or alteration work.
Full plans

This is the most thorough option. You can expect a decision within 5 weeks, or 2 months with your consent.

You’ll get a completion certificate within 8 weeks of completion of the building work as long as it complies.
Building notice

This type of application is only for smaller projects. You can start work 2 days after your notice has been submitted to your BCB. You don’t get formal approval like you do with full plans.
Regularisation

You can apply for ‘regularisation’ - retrospective approval for work already carried out without consent - from a local authority BCB only. "

Mandy Thomson

16:50 PM, 4th February 2015
About 4 years ago

An HMO for licensing purposes is also defined as dwellings which, although they don't share living space (that is, they have their own independent bathroom, cooking, living and sleeping facilities), the occupants still need to pass through each other's living space (e.g. shared front door, hall and stairs) OR the building has been converted into self contained flats, but doesn't meet the 1991 building regulations, and less than two thirds are owner occupied - see the NLA Library > HMO definition for licensing and management standards

Building regulations may well apply, and planning permission definitely if the house was converted into fully self contained flats.

Colin McNulty

7:16 AM, 9th February 2015
About 4 years ago

Also be careful over the insurance you have, as some landlord policies state only a single kitchen.

I would also have half a mind on planning permission, as you could be seen to be effectively splitting the property into 2 flats, which would also affect the building regulations too.

Rebecca RAHMAN

11:23 AM, 9th February 2015
About 4 years ago

the easiest way in one call is to your council's planning department re splitting the property, also depends on If you'll fully split the property or leave it open plan still.

Tim none

13:28 PM, 23rd February 2015
About 4 years ago

Be careful to weigh up your extra income verses costs to convert to an HMO. It is sometimes more cost effective to sell and buy another property with the specific goal of turning into an HMO.

For example, a three bed house can be converted to five which is under the licence threshold (provided on two floors) and just two bathrooms would suffice. Cash flow would be more than double that of your two bed.

But, as you know, outer London areas are where HMOs really work best because yields are so high.


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