David Mensah

Registered with Property118.com
Saturday 14th June 2014


Latest Comments

Total Number of Property118 Comments: 81

David Mensah

9:16 AM, 10th February 2020
About 2 weeks ago

Summerhouse, Annex, Studio? Could I rent to a lodger?

Have you gone for pre-planning advice? That should not be that expensive and you will be given some guidance. Councils differ quite a bit in their attitudes towards outbuildings and lodgers.... Read More

David Mensah

11:26 AM, 8th February 2020
About 2 weeks ago

New area for me - Block of flats help?

If that picture is the building, then it is a beauty!

Presumably you've already looked into this, but you'll need more specialised finance to have multiple flats like this. The mortgage company is likely to want more things guaranteed than you are used to with standard BTLs. Nothing majorly difficult, but it can be niggly. Well worth talking to an experienced broker about in some detail.

If you want to do holiday lets, you are likely to annoy permanent tenants, so this may be hard to combine.

Also, "If the block is a house which has been converted entirely into self-contained flats the conversion will be regarded by local housing authorities as an HMO if it does not comply at least with the standards of the 1991 Building Regulations and if more than one third of the flats are let out on short leases. These blocks of flats will not be subject to mandatory HMO licensing although the local housing authority may introduce additional licensing to cover them."... Read More

David Mensah

15:28 PM, 1st February 2020
About 3 weeks ago

Does this restrictive covenant prevent HMO development?

I think the covenant is there to prevent you from splitting the house into multiple independent dwellings. An HMO is normally a single dwelling. If you look up "dwelling house" you will see quite an extensive set of cases about what the name implies. A famous case is Roberts v Howlett (2002) - - but if actual fact the term is not well defined in the law, and the source of much confusion.

In m opinion this covenant does not stop you from using an HMO with shared facilities, and I would just go for it.

p.s.
See also http://www.fyldetaxaccountants.co.uk/property-articles/can-capital-allowances-claimed-hmo-definitive-answer/... Read More

David Mensah

14:06 PM, 25th January 2020
About a month ago

Pulled out again due to onerous Ground Rent increases

Reply to the comment left by David Mensah at 25/01/2020 - 13:59
p.s. if you look at UK RPI http://www.swanlowpark.co.uk/retail-price-index then in the period 1960-2019 it has doubled roughly every 13 years, although that includes the high inflation period of the 1970s. Given the BOE current inflation targets, a doubling of roughly every 25 years may be a better estimate (modulo all the usual caveats about predicting economic trends).... Read More

David Mensah

13:59 PM, 25th January 2020
About a month ago

Pulled out again due to onerous Ground Rent increases

Ground rent of a few hundred quid that goes up with RPI doesn't seem onerous to me. If it follows RPI, wether that is assessed annually or every 5 or 10 years, it will still feel like the equivalent of a couple hundred quid in 300 years. Linking to RPI seems sensible.

It's true that some leases go up by more, and the one's that doubled every 10 years are scandalous.

Where these leases can trip you up is in other clauses that can block you from doing certain things, or charge high fees for basic services.

Of course if you have the bad luck of owning a flat with Grenfell style cladding then the lease can force you to pay for your share of the repairs, which can be enormous. But that would have happened on other forms of co-ownership as well. It's just back luck,.... Read More