Trying to understand what needs doing to convert 2 properties into 1

pinky79

Hi

We are considering buying a property in Somerset which was one cottage/unit, but around 1968, converted into 2.

Its being sold on one title deed.

We would like to buy it, converting it back to to one property. 

We're not cash buyers and do not wish to use a bridging loan.

Mortgage company and brokers are saying a valuer would go to the property to ensure it 'appears' to be one dwelling. The main issue appears to be it can't have 2 kitchens. Multiple bedrooms and bathrooms are fine as they are common.

We would likely keep the 2 stair cases.

Our thoughts are to take down the plasterboard wall connecting the 2 reception rooms (1 in each property), and make the older/smaller kitchen of one property look like it functions as a utility room.

Any hints, tips or advice on what the minimum steps could be to convince a valuer its one property (so we can buy it)?

Any recommendations on who we need to check with / get permissions from to ensure the whole process is done correctly and efficiently?

Any help would be greatly appreciated. 

Thank you in advance ☺️ 

Flugelhorn

I don't think you would be able to do anything to the place before you buy it? unless the vendors are happy to make the changes

silvercar

Is your loan to value high? With a low LTV, the lender may only do a paper valuation exercise and won't see the inside. If it is on one title deed, how would a lender know it is 2 properties at the moment?

Friends did buy a house with 2 kitchens, their lender was happy provided they undertook to remove the second kitchen within 3 months of ownership.

pinky79

Flugelhorn said:

I don't think you would be able to do anything to the place before you buy it? unless the vendors are happy to make the changes

We are asking if they would consent. No response yet

SDLT_Geek

pinky79 said:

Hi

We are considering buying a property in Somerset which was one cottage/unit, but around 1968, converted into 2.

Its being sold on one title deed.

We would like to buy it, converting it back to to one property. 

We're not cash buyers and do not wish to use a bridging loan.

Mortgage company and brokers are saying a valuer would go to the property to ensure it 'appears' to be one dwelling. The main issue appears to be it can't have 2 kitchens. Multiple bedrooms and bathrooms are fine as they are common.

We would likely keep the 2 stair cases.

Our thoughts are to take down the plasterboard wall connecting the 2 reception rooms (1 in each property), and make the older/smaller kitchen of one property look like it functions as a utility room.

Any hints, tips or advice on what the minimum steps could be to convince a valuer its one property (so we can buy it)?

Any recommendations on who we need to check with / get permissions from to ensure the whole process is done correctly and efficiently?

Any help would be greatly appreciated. 

Thank you in advance ☺️ 

If at the date of completion of your purchase the property counts as two dwellings, and even though you intend to combine them, there is every chance that the extra 5% stamp duty land tax charge will apply on the basis that you will have, at the time of completion of the purchase, two or more dwellings.

GDB2222

SDLT_Geek said:

pinky79 said:

Hi

We are considering buying a property in Somerset which was one cottage/unit, but around 1968, converted into 2.

Its being sold on one title deed.

We would like to buy it, converting it back to to one property. 

We're not cash buyers and do not wish to use a bridging loan.

Mortgage company and brokers are saying a valuer would go to the property to ensure it 'appears' to be one dwelling. The main issue appears to be it can't have 2 kitchens. Multiple bedrooms and bathrooms are fine as they are common.

We would likely keep the 2 stair cases.

Our thoughts are to take down the plasterboard wall connecting the 2 reception rooms (1 in each property), and make the older/smaller kitchen of one property look like it functions as a utility room.

Any hints, tips or advice on what the minimum steps could be to convince a valuer its one property (so we can buy it)?

Any recommendations on who we need to check with / get permissions from to ensure the whole process is done correctly and efficiently?

Any help would be greatly appreciated. 

Thank you in advance ☺️ 

If at the date of completion of your purchase the property counts as two dwellings, and even though you intend to combine them, there is every chance that the extra 5% stamp duty land tax charge will apply on the basis that you will have, at the time of completion of the purchase, two or more dwellings.

The OP's game plan is that the seller will give him permission to go into the property ahead of completion, so as to convert the property into a single dwelling by knocking down some walls and turning one kitchen into a utility room. 

Didn’t you post a case a few weeks ago where for SDLT purposes the tax was levied on the position ahead of completion? Was it this one, perhaps?
https://library.croneri.co.uk/cch_uk/taxtoday/wkid-202410281224040832-12751503

SDLT_Geek

GDB2222 said:

SDLT_Geek said:

pinky79 said:

Hi

We are considering buying a property in Somerset which was one cottage/unit, but around 1968, converted into 2.

Its being sold on one title deed.

We would like to buy it, converting it back to to one property. 

We're not cash buyers and do not wish to use a bridging loan.

Mortgage company and brokers are saying a valuer would go to the property to ensure it 'appears' to be one dwelling. The main issue appears to be it can't have 2 kitchens. Multiple bedrooms and bathrooms are fine as they are common.

We would likely keep the 2 stair cases.

Our thoughts are to take down the plasterboard wall connecting the 2 reception rooms (1 in each property), and make the older/smaller kitchen of one property look like it functions as a utility room.

Any hints, tips or advice on what the minimum steps could be to convince a valuer its one property (so we can buy it)?

Any recommendations on who we need to check with / get permissions from to ensure the whole process is done correctly and efficiently?

Any help would be greatly appreciated. 

Thank you in advance ☺️ 

If at the date of completion of your purchase the property counts as two dwellings, and even though you intend to combine them, there is every chance that the extra 5% stamp duty land tax charge will apply on the basis that you will have, at the time of completion of the purchase, two or more dwellings.

The OP's game plan is that the seller will give him permission to go into the property ahead of completion, so as to convert the property into a single dwelling by knocking down some walls and turning one kitchen into a utility room. 

Didn’t you post a case a few weeks ago where for SDLT purposes the tax was levied on the position ahead of completion? Was it this one, perhaps?
https://library.croneri.co.uk/cch_uk/taxtoday/wkid-202410281224040832-12751503

Yes, the Goldsmith case was a few weeks ago and one of the questions was whether access by the buyer ahead of completion amounted to "substantial performance" and brought the "effective date" for SDLT to an earlier date.

On the facts there it was held that the access had by the buyer did not amount to "substantial performance". 

Usually though if a seller allows a buyer to go into the property to convert it, that would amount to substantial performance.  That would mean the SDLT position having to be judged as at the moment possession is taken, when it would still be two dwellings.

GDB2222

I suppose a safer course might be for the seller to do whatever work is needed to knock the property into a single dwelling, but the seller might not be willing. 

pinky79

We are asking if the seller will allow us to do the leg work whilst they own it. They have no appetite to do it. We may get some form of legal documentation to protect us, and them. 

The challenge is more about knowing exactly what the minimum work is so they valuer signs it off as one property.

We also looking for any guidance on who we should contact to make sure everything we do is correct. E.g council/council tax to one property,  building control, planning, utilities etc

martindow

Is there a potential issue with planning permission being required to combine the cottages?  Some local authorities are not keen on this as it reduces the number of dwellings by one.

sheramber

How much upheaval would your seller be prepared to tolerate?

Would  they want their living room opened up while they were living there?

what about noise?

You would need to check re planning permission but  it would  need Building  Regs which would entail inspections of work being done. 

Would the work be done before or after exchange of contracts?