Stud wall + renting out a room

ilikepancakes

Hi, me and my partner are currently renting a flat and we sub let one bedroom to a nice couple.
We started to look for a flat to buy and had our offer accepted and looking to move to our new flat in around 2-3 months.

The couple we are living with right now will move with us to the new flat. It's a 2 bedroom flat, one bedroom has en suite bathroom.

Because it has massive living room (350sq ft), I thought about building a stud wall and to make another bedroom and rent it out for single person. Bedroom and remaining living room would have their independent windows.

The flat is leasehold and I'm not sure if we can build a stud wall, thereafter I would just build it without asking the property managing company as they would probably decline.

My question is, what could we face if we build the wall and rent out 2 bedrooms and somebody notice that?

Thanks

Comms69

That would make you liable under HMO legislation, which I suspect you don't want.


As for what could happen? You could forfeit your lease. (that means you lose the property, no compensation)

davidmcn

You'd need to comply with building regulations too.

ilikepancakes

You are right with the HMO, however if we rent out 2 rooms for 1 person each then I think it won't be under the HMO. Anyway, I will read more about it.

My bigger concern is the lease forfeit.
Is it really a real threat to have the lease being forfeit?
I mean, would they really forfeit the lease for building a stud wall before some kind of warning or before asking to remove it?

Comms69

ilikepancakes wrote: »

You are right with the HMO, however if we rent out 2 rooms for 1 person each then I think it won't be under the HMO. Anyway, I will read more about it. - 3 households. That is the basic definition. What you are thinking of is compulsory licencing.

My bigger concern is the lease forfeit.
Is it really a real threat to have the lease being forfeit? - yes.
I mean, would they really forfeit the lease for building a stud wall before some kind of warning or before asking to remove it?

I'm not saying it's definitely going to happen. But is it a real threat; yes.


I have no idea why you would do any of this anyway, it sounds like you are living beyond your means. But regardless if you choose to. Stick with renting out a single room.

JuzaMum

I thought it wasn't an HMO if one of the three is the owner as they will not be renting. Does having two lodgers make your home an HMO?

Google says What is an HMO property?
A house in multiple occupation ( HMO ) is a property rented out by at least 3 people who are not from 1 'household' (for example a family) but share facilities like the bathroom and kitchen. It's sometimes called a 'house share'. ... You must have a licence if you're renting out a large HMO in England or Wales

I don't claim to be an expert though...

Comms69

JuzaMum wrote: »

I thought it wasn't an HMO if one of the three is the owner as they will not be renting. Does having two lodgers make your home an HMO? - 3 or more households. It's as simple as that. Ownership irrelevant

Google says What is an HMO property?
A house in multiple occupation ( HMO ) is a property rented out by at least 3 people who are not from 1 'household' (for example a family) but share facilities like the bathroom and kitchen. It's sometimes called a 'house share'. ... You must have a licence if you're renting out a large HMO in England or Wales

I don't claim to be an expert though...

Oh if google says so...

ilikepancakes

Thanks for the advice. We will stick to renting out only 1 room then.

We are living ok, putting aside more than 1 full salary a month in current situation. We will live in the new flat only 2-3 years more, we work a lot at the moment, we are low 20's now and our priority is to have as much savings as possible before we move out and rent out entire flat.

Thanks again

ilikepancakes

Comms, it looks like forfeiture is not a REAL threat:

The Commonhold and Leasehold Reform Act 2002 has now tightened-up the rules governing when a freeholder can issue proceedings for forfeiture.

Section 146 Notices

Where a landlord wishes to bring a lease to an end because a leaseholder has breached a covenant, other than one to pay Rent, the landlord will usually be required to serve a notice called a “Section 146 Notice”, on the leaseholder. This notice must detail the breach of covenant and give the tenant a reasonable period of time in which to remedy it. Only if the tenant fails to remedy the breach within that time, is the landlord permitted to commence forfeiture proceedings to bring the lease to an end.

If the freeholder does not like the wall, it looks like I will have option to remove it before forfeiting the lease

need_an_answer

But do you really want to have to go down the route of an enforcement by the freeholder?
That's quite a bad attitude to have.

You've been given advice here regarding the potential consequences and your opinion seems to be you'll continue until you are warned formally.

Personally dependant on how big the complex is where this flat is located its not just the putting up of a stud wall you would need to be mindful of.I suspect it wouldn't take near neighbours to work out there were potentially 5 or more people living in a 2 bed property and start questioning the lease that way.

Does the lease and more importantly your potential mortgage company allow the subletting of multiple rooms within a 2 bed flat?

ilikepancakes

You're right... It's not worth the hassle and potential problems.
Thanks guys