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Registering as an HMO...

I own the lease on a flat in a converted block. The block comprises of 15 long leasehold flats plus common parts. The management co are having to register the block as an HMO because it meets this criteria:

A building which is converted entirely into self-contained flats and the conversion does not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short-term tenancies

The block was converted around 25 years ago, but now a number of the flat leaseholders are buy-to-let owners, who have rented out their flats on short term tenancies.

My question is... should I be worried about this? Does it have implications for me as the owner of a long leasehold flat?

As far as I can tell, it imposes extra duties on the managing agents (who will increase their management fees accordingly), but I don't see other implications for me.

Can the council require works to be done to the building? The block already has a fire alarm system, which I believe will meet HMO requirements. But it has just one wooden staircase.

Any one else been in a similar situation?

Comments

  • jc808
    jc808 Posts: 1,756 Forumite
    i would challenge this

    you own a flat not a room or floor in a house !!!!!!!!!!!
  • Werdnal
    Werdnal Posts: 3,780 Forumite
    Part of the Furniture Combo Breaker
    edited 22 March 2012 at 10:29AM
    OP, I too am questioning whether someone has the wrong end of the stick here - or even the wrong stick entirely!

    An HMO is usually a large house which is let on a "room by room" basis, ie tenants have sole use of their own room, but share facilities like kitchen, bathroom and lounge.

    If your property is converted into completely self-contained flats, ie you have an entrance door to each flat, and all the facilities a tenant uses are inside that entrance door - their own solely used bathroom, kitchen etc, then it is not strictly an HMO.

    However, you may need to thoroughly check the health and safety rules and regs relating to converted properties, as whilst the full HMO regs may not apply, there may be some other requirements under fire safety etc. I believe individual flats must have fire/smoke proof entrance doors, and must be able to be opened from inside without a key (turn button type locks). The flat I let is in a similarly converted property - former riverside warehouse building now 8 flats, and our freeholder has taken advice from a local Fire Safety advisor, and recently installed emergency lighting, sprinkler systems etc. There should also be a formally adopted fire safety evacuation plan, and risk assessments, plus all flats were recommended to have individual fire extinguishers and blankets supplied and annually serviced.
  • red40
    red40 Posts: 264 Forumite
    I own the lease on a flat in a converted block. The block comprises of 15 long leasehold flats plus common parts. The management co are having to register the block as an HMO because it meets this criteria:

    A building which is converted entirely into self-contained flats and the conversion does not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short-term tenancies

    The block was converted around 25 years ago, but now a number of the flat leaseholders are buy-to-let owners, who have rented out their flats on short term tenancies.

    My question is... should I be worried about this? Does it have implications for me as the owner of a long leasehold flat?

    As far as I can tell, it imposes extra duties on the managing agents (who will increase their management fees accordingly), but I don't see other implications for me.

    Can the council require works to be done to the building? The block already has a fire alarm system, which I believe will meet HMO requirements. But it has just one wooden staircase.

    Any one else been in a similar situation?

    A converted block of self contained flats is a HMO if it meets the definition set out in section 257 of the Housing Act 2004, from what you have described your flat is part of the converetd building and therefore part of a HMO.

    Although the property wont require a mandatory HMO licence, your local authority may have additional licensing in place and the hence the reason to have it registered.

    On the other point the council can come in and ask you to do certain works to meet rules and regulations, however to what extent you would be required to pay any monies would be down to the terms, conditions and schedules in your own lease agreement.

    As well as the Housing Health and Safety Rating System that applies to all residential properties, you are also subject to the regulations below which apply to section 257 HMO's

    shttp://www.legislation.gov.uk/uksi/2007/1903/contents/made

    HTH :cool:
  • Mrs_Z
    Mrs_Z Posts: 1,143 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    We bought a converted flat in a victorian building at the end of 2010. The building is converted into 5 flats, 4 of which have been sold. The building is a licenced HMO. It hasn't impacted on us in any way that I can think of. It was never mentioned during the purchase process, I only know due to the notices in the communal areas.
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