House purchase, use class query

Ikejiri

Hello,

I am hoping that someone may be able to give me bit of guidance/advice on a property purchase and usage issue that has arisen from one of the searches.

I am purchasing in cash a property that comprises a small A1 shop on the ground floor with residential use on the remainder of the ground floor and residential on the 1st and 2nd floors. My wife and I are planning to run our business from the shop. Although we are starting a new business it is very similar to the businesses run from the shop by the two previous owners, both of whom I know personally. The first of these owners owned the property and ran the businesses from October 2007 to January 2012 and the second owners from January 2012 to April 2015. Both of these owners lived in and used the residential parts of the building as their homes.

Our solicitor, through one of the searches, has advised us of a planning application for a change of use that was granted in February 2006. This was to change to A3 usage on the ground floor(including the A1 shop) and D1 usage on the first floor, leaving the 2nd floor as residential. Any work to do this was never carried out and the first of the owners that I know purchased it in August 2006 and, as I say, ran their shop business from the shop and lived in the rest of the property as residential. The second owners I know did exactly the same.

However, our solicitor is concerned as there doesn't yet seem to be any paperwork (and they are unsure of commercial use regulations) to say that the property returned to the A1 and C3 usage after the planning permission with change of use as above was granted in Feb 2006.

For my situation, having only the 2nd floor as C3 is not practical and for my business the shop needs to be A1, not A3.

I do know that the VOA assessed and gave the rateable value of the only the small A1 shop in 2010 with no mention of any other commercial parts of the building.

So what I need some advice/guidance on is:
-If, after a planning application and change of use is granted, the work is never carried out and the property is not used according to that change of use, does it expire and the use return to how it was used before?
-Does the fact that, since 20007, two owners have worked and lived in the premises as C3 and A1 mean that to all intents and purposes it is that usage?
-Common sense tells me that, as people have been living and working there as A1 and C3 and that it was rated by the VOA as A1 in 2010, it is evidently A1 and C3, and therefore this shouldn't be a problem - however, is that immaterial and if it says on their system it is A3, D1 and C3 then that is what it is?
-I would like to speak to the local council but I'm concerned that I could make this a problem, when I should proceed with the purchase and use it as it has been used since 2007 and not worry?
-If, however, there is nothing to say that it is A1 and C3 usage and in fact, therefore, it is the mixture of A3, D1 and C3 how likely is it that after a change of use application, a change to A1 and C3 would be granted?

Any help/guidance/advice would be greatly appreciated. I'm due to speak to the solicitor again tomorrow for updates and we are hoping to exchange and complete this week.

Many thanks!

G_M

Ikejiri wrote: »

Hello,



So what I need some advice/guidance on is:
-If, after a planning application and change of use is granted, the work is never carried out and the property is not used according to that change of use, does it expire and the use return to how it was used before?
No

-Does the fact that, since 20007, two owners have worked and lived in the premises as C3 and A1 mean that to all intents and purposes it is that usage?
No, but it might work in your favour when applying to change the class again

-Common sense tells me that, as people have been living and working there as A1 and C3 and that it was rated by the VOA as A1 in 2010, it is evidently A1 and C3, and therefore this shouldn't be a problem - however, is that immaterial and if it says on their system it is A3, D1 and C3 then that is what it is?
It is what it is. If current/previous owners have been illegally using the property contrary to the Planning rules, that does not mean a new owner can do the same

-I would like to speak to the local council but I'm concerned that I could make this a problem,
Could certainly make a problem for the current owner!
when I should proceed with the purchase and use it as it has been used since 2007 and not worry?
You would need to apply for change of use
-If, however, there is nothing to say that it is A1 and C3 usage and in fact, therefore, it is the mixture of A3, D1 and C3 how likely is it that after a change of use application, a change to A1 and C3 would be granted?
Only the Planners could answer that question I'm afraid

...... and we are hoping to exchange and complete this week.

Hmmm........ good luck with that time-table!

Ikejiri

Hello,

Thank you very much for your reply.

So, once a planning application including a change of use is granted, that becomes the de facto use of that property, from that point?

Do you happen to know the length of time a change of use application would take? And if there is a general rule of thumb about the likelihood of success? Or is it purely on a case by case basis?

I've asked both previous owners about this issue and neither of them were told it was a problem by their solicitors when they made the purchase - one of them just said that their solicitor told them they could use the 1st floor as a doctor's surgery if they wanted!

I suppose what I need to do is speak to the local planning department about this a theoretical problem, at least initially.

Thanks again

Freecall

Ikejiri wrote: »

So, once a planning application including a change of use is granted, that becomes the de facto use of that property, from that point?

That is correct. In your initial post you used the concept of 'work' being done. Remember, it is the 'use' that has been granted which is important. Any operational development is a separate issue.

Ikejiri wrote: »

Do you happen to know the length of time a change of use application would take?

Possibly eight weeks but that assumes all goes according to plan.

Have either an informal word with your Local Planning Authority or use its more formal Pre-application Advice procedure in order to give yourself a good understanding of where you stand.

G_M

Freecall wrote: »

.

Have either an informal word with your Local Planning Authority or use its more formal Pre-application Advice procedure in order to give yourself a good understanding of where you stand.

.....unless you're concerned about p*ss*ng off the current owner.

If you end up not buying, and the Planners have realised there's a misuse going on.........

lincroft1710

Ikejiri wrote: »

I do know that the VOA assessed and gave the rateable value of the only the small A1 shop in 2010 with no mention of any other commercial parts of the building.

VOA will assess what is there at date of their inspection and in some circumstances will ignore use class. If pp was for 100% commercial usage and VOA found 50% being used for living accom, then that 50% would be assessed for Council Tax and remaining 50% for non domestic rates.

The VOA approach will primarily follow the dictates of Rating and Council Tax laws, not planning laws.

lincroft1710

Ikejiri wrote: »

So, once a planning application including a change of use is granted, that becomes the de facto use of that property, from that point?

No, that becomes the de jure use, the right to use as allowed by the permitted use class.

De facto is the actual use.