New Build Coach House - yes or no

ILL1977

Hello, I’m considering buying a new build one bedroom coach house with two garages underneath. I would be the freeholder for the entire building and one of the garages would be leased. 

I’ve read a lot of forums on the pros and cons of coach houses but they are all old, from at least 8 years ago. Does anyone have any updated info for me, example: 

1. Are the new builds still so difficult to insure? 

2. Are they expensive to insure? 

3. Are the rooms above the garages better insulated as not as hard to heat as they once were? 

4. As the freeholder of the leased garage, am I able to stipulate what the garage can be used for? 

5. Is the resale value of coach houses better that it was? 

The couch house I’m interested in has a garden, separate downstairs utility room, access to the garage from the inside so a bit more quirky, which I hope would make resale value a bit better. And it’s close to a hospital!

Thank you everyone - much appreciated

Slinky

I've yet to see anybody list 'pros' of a coach house as a reason to want to buy one.  They just seem to have compromises which people are prepared to make because of price.

NameUnavailable

New/recent build coach houses are quite common but yet we see regular threads on here about people coming up against mortgage/legal problems when buying/selling them.

The lease will stipulate what the garage can or can't be used for, but it is down to you to enforce that if the leaseholder decides to turn it into a gym or workshop or whatever.

Personally I quite like them as a design and alternative to a flat as you don't have anyone living above or below you and many are fully detached.

oystercatcher

I know someone who used to live in a coachouse where the garage had been converted into another room. So there could be development potential for the future which you wouldn't get with a flat.

AdrianC

Think of it not as a house, but as a one bed leasehold flat on top of two leasehold garages, plus the freehold of the entire building, and you aren't far off.

Pok3mon

Do you own a coach?

ILL1977

Thanks everyone, very helpful. 

This coach house is a bit different in that it has a few more bells and whistles which might help with resale in 15 years time. 

Plus it’s okay walking distance to a hospital. 

I think I might go for it as I can’t afford a decent house on a 95% mortgage and I can’t afford a two bedroom new build on Help to Buy. 

Ain’t life grand? 

Jeepers_Creepers

Hi ILL.

What are your concerns?

The terms of the lease should determine what - pretty well exactly - the spare garage can, and can not, be used for, or what can be stored in there. For instance, it'll very likely state that fuel cannot be stored in there, other than what's in the tank of the vehicle.

It'll also very likely state that it is a vehicular garage, and cannot be used for anything else. Being pedantic, that could outlaw storage boxes, being used as a gym, carrying out of repairs on a vehicle, keeping a freezer or washing machine in there, use as a workshop, possibly even completely prohibiting a power supply, stuff like that. So in theory you should be well protected.

Other common concerns are noise - garage door being opened and closed late at night, stuff like that.

Anything else? Can't think of anything.

How much of a problem any of this might end up being will almost certainly come down to the calibre of person who is leasing the garage. In the vast majority of cases, then, there shouldn't be a problem, at least no more than one you could end up having with the neighbour on either side. So, should it put you off? I don't think so.

Your example also sounds better than most as you'll only have one extra garage under you, whereas it's quite common for there to be 4 in total, only one of which is yours.

I'd speak to the builder about your concerns, and what sorts of terms will be in the lease to protect you. All you need to do then is (a) be ready to act the instant the other garage user takes the piddle with behaviour that causes a disturbance, and (b) make absolutely certain you add LegProt to your new house insurance.

ILL1977

Thank you Jeepers-Creepers for your very nice and helpful response. 

I do think things have changed and the freeholder is protected as to what the leaseholder is allowed to do in their garage. I also know only my garage would be plumbed and have electricity so no worries about that. 

The noise isn’t too much of an issue because living attached to neighbours on either side would be worse, I think. A screaming baby, arguing neighbours. I’d rather take my chances with a garage door opening and closing. 

I’m seeing the developer tomorrow and will ask all the relevant questions but I think I’m going to go for it. 

Whoop 🙌🏻 

eddddy

If you want to be super cautious, you can check with your intended mortgage lender and intended insurer that they're happy with the garage lease situation.

You'll probably have to insure the whole building - the lease will probably allow you to charge a small percentage of the premium to the garage owner (but the amount may be very small, so you might not bother).


One risk is that the garage leaseholder does something daft that invalidates your home insurance - like repair cars as a business from the garage - and then the car repair equipment starts a fire.


If the lease is well written, it will say that the garage leaseholder has to pay for any damage, if they do anything to invalidate your insurance. But if a fire causes £50k worth of damage, and the leaseholder doesn't have £50k - it's difficult!


It's probably worth giving the garage leaseholder a copy of your insurance, so they can see what it does/doesn't allow.

knightstyle

DD rented one a few years ago but soon ended the tenancy as it was all electric and always cold due to poorly insulated floor and cold garages and an open space under it.
Plus if you have or are planning young children think about getting them and shopping up those stairs all the time.