Conveyancing solicitor experienced with live/work unit purchase - change of status?

stg123

Hi,

We're just about to buy a live/work unit in London, on the basis that it's status will be changed with the council to being fully residential.

As this is a bit of a niche area, we wanted a solicitor who was experienced with this sort of thing - didn't have much luck Googling.

Does anyone have a recommendation?

Richard_Webster

You need to talk to to some real local solicitors - ask them for a quote and explain the position.

I can't see the problem. Either the seller has or hasn't got planning permission for a change of use. If he hasn't don't buy. Not really rocket science but probably beyond some of the factory conveyancers.

JQ.

On what basis will the status be changed? It requires full planning consent for a change of use, as Richard says, it's either got this or it hasn't there's no middle ground.

stg123

Hey both, thanks for your replies.

You're right, it would probably be the responsibility of the vendor to sort this out, e.g. they'd have to prove 4 years residential only use, or whatever the application needs to state - ideally we wouldn't get too involved. As yet, they haven't started to make the application.

My concern is really more that I'd know about this than my solicitor, who'd I'd really expect to be able to flag up any realistic problems/ have experience of how this has worked in the past. Our mortgage lender wouldn't lend without the change of use and we wouldn't touch the property either.

As you say, the legal issues around live/work are pretty complex - I'm afraid of getting a conveyancer who'd tell me everything was fine, but really wouldn't have a clue themselves. A general risk I suppose!

So really I'm looking for any recommendation of a conveyancer in London who at least has come across the issues before, and would know what to look out for.

JQ.

I really don't think it's a legal issue either, and you'll struggle to find a conveyancer who's an expert in such things. Live/work units did not last very long as there was limited demand for them.

It's a planning matter and it's a Planning Consultant you would want to speak to to get clarity. Generally, a change of use from an Employment Use to a Residential Use is quite difficult, but it may be alot simpler for live/work units, I honestly don't know.

However, all of the above is irrelevant as I don't see why you need specialist advice. Planning consent is a matter of fact - it's either got it or it hasn't, there may be certain limitations put on the property, but that's the same with any residential property and any good solicitor would be able to provide advice on that. Planning consents are quite simple documents and you will be able to clearly understand it yourself.

Personally, I wouldn't spend any cash on fees until they've got the Change of Use sorted. At that point, it will be the same as buying any other house or flat which any good solicitor can advise on.

good luck

stg123

Hi again,

Our attempt to purchase a live/work unit is continuing, slowly. With the info from this thread and some further research, we asked the vendors to organise a certificate of lawfulness, which they initially agreed to.

They've now changed their minds - I think because they are concerned about sending evidence to the council that they have essentially been using the building illegally as residential only since they have lived in it.

As far as I can see, the flat is registered on the VOA website as being council tax only since 2000, easily being evidence enough of residential use only for the past four years - so it should be ok.

Does anyone have any idea what the come back could be if the vendors tried to make a certificate of lawfullness application, but the council turned it down. Would the council be likely to then start proceedings against them, saying they were in violation of planning?

As far as I can figure out, a certificate of lawfullness is far easier to sort out than a change of use, and looking through the Council's planning portal they've always been approved, except when there wasn't 4 years of evidence.

PasturesNew

I'd love a live/work unit, but there are so few of them and the ones that exist are so much more expensive than a regular house. Just not worth it. For what I'd use it for, it'd be easier/cheaper to get a "hobbies room" in the garden.

neverdespairgirl

What local authority is it?

stg123

neverdespairgirl wrote: »

What local authority is it?

Tower Hamlets - why?

neverdespairgirl

Because different councils have different attitudes to live / work.

hairybaboon20

similar to what the original poster was discussing... i have been searching the internet and not finding enough info on this live/work issue.

i am looking to offer on two houses in hackney. they are both freehold and classed as live/work units on the deeds. however, there is no clear 'work area' demarcated on the deeds and the properties have been used for solely residential purposes (and paying only council tax) for more than four years.

for one of them, the owners have submitted papers to the council for a change of status to residential but said they will not hear back for 6 weeks... and obviously no guarantee how the council will take it.

for the other, they have submitted no paperwork and are just selling the property as they have owned it.

so my questions are:

1) given that they have been in purely residential use for more than 4 years, as have most of the houses on that street, is there any reason why the council would reject the change of usage?
2) if i ended up having to go through this status change myself, what would it cost?
3) is there any need for me to change the status at all? as there is no business running or work area, then i dont see how the council can charge business rates?
4) what if i end up buying the first property before the council has approved the change of usage -- (its a nice place and there are other people interested)? am i just taking on the previous owners risks for nothing? will the council look unfavourably on a new owner?
5) what are the capital gains tax implications of selling a property like this? again, if there is no specific work area - then they cant charge council tax on X% of the sale?
6) what are the lending implications of these properties... is there any reason why the banks would not wish to lend?

in my mind, it doesnt seem like these houses should be anything other than residential... and people have been owning and renting them for years without any businesses running. will it really be as complication as everyone seems to imply? what are my risks exactly so i can factor into my offers?

many thanks for any advice,

Tom