Undemised loft space issue - is there any way of working this out?

ojea09

Hi everyone,
I've recently had an offer accepted on a house, which is dependant on me resolving a handful of issues with regards to the property before I move on with the purchase.
The property is a 2-bed, with a converted loft space (the loft space could be a '3rd' bedroom).
The problem is...:

• the current owners have built a proper set of stairs up to the loft space
• the current owners didn't get planning permission
• the loft conversion doesn't appear to meet building regs
• the leasehold agreement doesn't include the loft space (they therefore don't technically own it, even though they have sole access)

Is there anyway that we can progress on this purchase, or is it too risky?
The least risky option seems to be removing the stairs to the loft, and installing a ladder instead, and only using the loft as a non-habitable room.
And I don't think indemnity insurance is possible, if we wanted to use the room as a bedroom, because we wouldn't actually own the loft space anyway?

I would be interested to know if anyone has had any similar experiences, and can offer any advice.

Thanks,
O

princeofpounds

Planning - if you are past the 4yr enforcement timeframe then it's not an issue.

Building Regs - if you are past the 1yr enforcement timeframe and it is not build dangerously then there is not an enforcement issue. However, you will not be able to market it as a habitable room, and you have much less assurance that it was actually built properly, so it may be a problem in practice.

Demise - a big problem. They do not own the space. They cannot adversely possess the space, as they are already tenants of the freeholder. This cannot be resolved without negotiating with the freeholder. Potentially you could look at forcing the sale of the freehold to you via Tribunal, but if the freeholder is super-switched on they may be able to complicate this due to the non-demised space; your solicitor would need to check the eligibility rules very carefully. 

deFoix

This type of situation is quite common. The main concern is the quality of the conversion works. If the "conversion" was done properly I would offer on the basis that it's a 2 bed and knock the price down a bit. Your main risk is that when you come to sell the next buyer starts asking the same questions.  

The demise issue is more theoretical. Chances are the Freeholder doesn't know or care about it.

There however could be issues with buildings insurance. If the Freeholder tells the insurer that he's insuring a 2-story house but in fact and in practice 3 stories are being used as such then the insurer might have a problem with that.

user1977

Sounds a bit odd for a freeholder not to have demised the loft space where it's a house (rather than a flat) - are you sure that's right? That would be my main concern - unless the works are very recent then otherwise the loft is what it is, and you can form your own opinion about whether it's suitable for you to use as a bedroom etc.

Presumably you've already got advice on all of this from your solicitor?

NameUnavailable

ojea09 said:

Hi everyone,
I've recently had an offer accepted on a house, which is dependant on me resolving a handful of issues with regards to the property before I move on with the purchase.

I would be interested to know if anyone has had any similar experiences, and can offer any advice.

Thanks,
O

It is really for the vendor to sort out any 'issues' with the property. Why buy someone else's problems?

AdrianC

The simplest solution to the lease question mark would seem to be starting the ball rolling on a statutory freehold purchase. If the vendor gets that underway pre-sale, then you don't need to wait the two years...