Combining properties.

Cardew

Does anyone know the position if a flat owner buys the adjoining flat to combine the property into a single flat as their sole dwelling.

Firstly are they liable for the additional stamp duty for buying a 'second home' or if they are, can this be reclaimed when the properties are merged.

How, and by whom, is it determined that the flat is a single dwelling?

Presumably the combined property will be re-assessed for Council Tax?

Also as neither of the flats can have a water meter(they are on an assessed rate) will just the one charge will be levied??

G_M

1st obvious question is who owns the freehold? (asuming this is Eng/Wales).

davidmcn

SDLT is based on the situation at the point of completion - so the additional rate will be payable. No concessions that I'm aware of.

lincroft1710

Council Tax would be re-assessed when 2 flats are converted to single dwelling

eddddy

There might be quite a few challenges, including...

Freeholder consent, Lease variation - The freeholder might see this as a good opportunity to charge you a big chunk of cash.

Planning consent (possibly) - your local authority may have a policy about not losing small dwellings (but this is less likely)

Finance - I doubt that you could get a residential mortgage until the redevelopment into a single flat is complete.

Cardew

The freehold for the flats in question is held by the individual flat owners, and it would be a cash purchase.

D_M_E

So it's a property which has been converted to 2 flats.

Presumably you would have to own both leases and all of the freehold then cancel the leases and then turn it back into a single property.

I would expect that, until both properties are recombined and both leases surrendered and/or cancelled, there would be a double charge for water, electricity and gas and probably council tax as well.

Once the leases have been cancelled one set of the utilities can be removed but expect loads of grief getting it done.

One thing to consider is having the resultant property put on a water meter, particularly if you don't use much of the stuff.

G_M

Cardew wrote: »

The freehold for the flats in question is held by the individual flat owners, and it would be a cash purchase.

Please explain.

* Is this (say) a 10 flat building where each flat-owner owns the lease and freehold to their own flat?
* Is this (say) a 10 flat building where each flat-owner owns the lease to their own flat + a share of the freehold of the entire building?
* Is this (say) a 2 flat building where each flat-owner owns the lease to their own flat + a share of the freehold to the building?
and freehold
* or what?

CIS

If a property is merged then it is the Valuation Office (England & Wales) or the Scottish Assessors (Scotland) will make the decision on the Council Tax band.

Craig

Cardew

G_M wrote: »

Please explain.

* Is this (say) a 10 flat building where each flat-owner owns the lease and freehold to their own flat?
* Is this (say) a 10 flat building where each flat-owner owns the lease to their own flat + a share of the freehold of the entire building?
* Is this (say) a 2 flat building where each flat-owner owns the lease to their own flat + a share of the freehold to the building?
and freehold
* or what?

I don't know the exact details as it is a friend of mine and he is abroad and in conversation he asked if I knew what happens. He can sort out the lease situation with solicitors if the sale goes ahead.

It is the principle of paying the addition stamp duty levy on a second home, when the property will not be a second home, that was the main point. In my rural area there are sometimes two semi-detached cottages that are 'knocked into one' and completely modernised; the same situation will occur in future.

eddddy

Cardew wrote: »

In my rural area there are sometimes two semi-detached cottages that are 'knocked into one' and completely modernised; the same situation will occur in future.

That's a very different situation.

Semi-detached cottages will almost always be owned freehold - i.e. the owner owns the land and the building.

In England and Wales, flats are almost always leasehold - i.e. the leaseholder 'kind of' owns the space within the flat, but does not own the walls between the flats or the communal areas.


So if your friend wants to join two flats, he might want to knock holes in walls that don't belong to him - and then walk backwards and forwards through the hole which represents 9 inches (or 240mm) of space that doesn't belong to him.

Or he might want to incorporate part of the freeholder's corridor into his flat.

If that's the case, your friend has to negotiate a price with the freeholder to allow that. The freeholder might ask for £100 or they might ask for £100,000.