Neighbour wants to buy loft

owen22

We own a ground floor flat (converted terraced house) where we share ownership of the freehold with the 1st floor flat.

We have been contacted by the owners of the upstairs flat as they want to add an extra bedroom. They have told us that they have not appointed an architect or applied for planning permission yet, as they are not wanting to begin the process (and start spending £££) until we give our permission to the general concept of their plan.

Their plan would involve conversion of the loft space, which we believe is not accounted for in the deeds and so it is assumed that this space is jointly owned by both flats (although we have no access to this space as it is only accessible from their flat).

While we do not have any issue with the general concept of the project, we want to ensure we are protecting ourselves and so have a number of queries:

1) We have seen various surveying firms who offer the service of valuing loft spaces but this seems to be based not only on the space itself but on architects drawings of what the space will look like after works are completed. Is this right? Is there anything to stop the tenants proposing a very basic conversation to lower the anticipated value it would add, but increasing the spec after sale of the space has been agreed?

2) We are currently renting out the flat. Are there any other considerations that we should be aware of that may impact our tenants?

3) If we sell the loft space, what will happen to the ownership of the roof and it's ongoing repair responsibility?

4) Is there anything that could negatively impact the value of our flat, should we want to sell it in the future?

Thanks!

bouicca21

A friend did this, bought the space, created a loft room (not compliant with building regs).  When there was a problem with the roof, the downstairs owner insisted that she was no longer jointly responsible  for the roof.  

So I think you need to be very clear on exactly what will be involved in this scheme and the knock on effects.  Also if the extra room is likely to increase the value of the upstairs flat, I’d be enquiring about some sort of overage clause.

eddddy

If you want to do this "properly"... you would hire your own RICS valuer to act on your behalf.

For the sake of an example, your valuer might say...

• There is scope for creating 2 bedrooms in the loft
• That would add £150k to the value of the upstairs flat
• It would cost £50k to convert
• So "net profit" is £100k
• So as 50% owner you expect to be paid £50k

But your neighbours valuer might say:

• There is only scope for creating 1 bedroom in the loft
• That would add £100k to the value of the upstairs flat
• It would cost £60k to convert
• So "net profit" is £40k
• So as 50% owner you expect to be paid £20k

And then it's a case of negotiating to agree a price (probably somewhere between £20k and £50k). If you can't agree on a price, the conversion can't happen.


As part of this, the leases would have to be changed to clarify....

• Who is responsible for repairs and maintenance to the roof 
• The split of service charges - like insurance etc. (If it's currently 50/50, should it change to 65/35?)

You might want to impose other conditions like:

• Your surveyor and/or structural engineer has to inspect and approve all work that's done
• You have to approve materials (e.g. High quality roof tiles, heritage window frames, etc)
• Builders working hours - e.g. only between 8am and 5pm Monday to Friday
• No storage of building materials in front garden
• No carrying of building materials through communal front door and hallway (they have to be taken up via scaffolding/hoist)

markin

Would more rooms mean more people/kids and more noise if not well insulated in the first place, Or worse its rented out one day meaning more cars and more garden use?

canaldumidi

edddy has covered the relevant and important factors.