X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • HMO & Multi-Lets

    HMOs on Council estates

    Hi, I am new to HMOs and been recommended a nice 4 bed terraced house on a council estate.

    Many on the street have been improved externally which suggests it is an improving area, plus the Railway station to London is 10 mins walk, the town centre is 15 mins walk, the bus is 5 mins walk, the m4 is 3 mins drive, local shops 3 mins walk and large employers are 5 mins walk. So many positives!

    The only negative is it is in a Council estate - am I being stupid to question whether tenants will be put off by this, or does your experience show this reduces tenant interest?

    Grateful for your help and advice.
    0
    0

    Most ex LA properties have covenants which prohibit HMO use.

    1
    0

    It's not a caveat retrospectively enforced of any kind. They are restrictive covenants within the legal title.
    1
    0

    Rural Practice Chartered Surveyor. Experienced in estate management, residential investments, planning and development and rights for utility apparatus. All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Do not be put off by the fact it is ex council. These houses may not be that attractive but were usually well built and can have large foot prints. You need to make sure there is demand for that location, that is the key thing.

    You will need to check the title at the Land Registry, usually the original transfer of the property from the Council to the first individual. This will normally have a covenant stating the property is to be used as a single dwelling house only. This precludes an HMO. You will need to get consent from the Council before exchange for HMO use and some will grant it subject to conditions.


    1
    0

    Rural Practice Chartered Surveyor. Experienced in estate management, residential investments, planning and development and rights for utility apparatus. All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Well here's a thing. I know someone whose  bought in an area with lots of HMOs which are ex council. 

    There is a covenant on all the houses, to be used as a single dwelling.  So before buying they rang the council's legal department to ask why they were allowing HMOs when there is a covenant. Reply was that they are in a legal dilemma.  They can't enforce the covenant because 

    1. They can't stop it being an HMO because of permitted development and they are obliged to issue a certificate if applied for. 

    2. They are ĺegaly obliged to issue you with a licence if you apply and meet the criteria as a covenant is not a block to being issued with a licence..

    As a result they will not enforce the covenant as are legaly obliged to give you permission.

    Interesting but I don't think any council will want the cost of a legal challenge if they tried to enforce a covenant.
    1
    0

    I think that's a bit risky. The PD rights are to do with planning and the licences are to do with licence law. Both are separate to private title covenants.

    For peace of mind I personally would only buy one with express consent in respect of the covenant issue, especially in view of the investment (20k SDLT, 5k fees and 100k conversion) and also to ensure no future problems securing mortgages.
    0
    0

    Rural Practice Chartered Surveyor. Experienced in estate management, residential investments, planning and development and rights for utility apparatus. All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Agreed Ben. I know of one London borough where it is enforced.

    Don't forget that you'd need to go to the council for a license and possibly planning if an A4D area.

    0
    0