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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10610
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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I own my property. It is currently worth approx £375000 as a

Customer Question

Hi there, I own my property. It is currently worth approx £375000 as a whole. It has the ability to have 3 flats with in which when valued individually make the property worth more. I owe £137000 on the mortgage.I am looking to sell part of the property to clear the mortgage and to live in the rest of the house.
Do you think property developer to be interested in purchasing part of a house to make a flat and if the price is right for them doing the separation (electric gas water lease and partition walls etc) part of what they do. Is this a legal thing to do as i would not want to break any laws.hope this is clear.Thank you.Sharon
Submitted: 16 days ago.
Category: Law
Expert:  Aston Lawyer replied 16 days ago.

Hi Sharon,

Thanks for your enquiry.

Provided any Sale price covered how much you owe on your Mortgage (£137,000), there would be no issue with your Mortgage Lender to your proposal.

What is more of an issue is whether you would obtain planning permission (you or the Developer would need to apply for change of use into 3 Flats). If granted, the Developer would also need to need to obtain Building Regulations approval for the 2 new Flats and you would also need to obtain Building Regulations for "the Flat" in which you are to reside.

Any Developer will therefore have to weigh up the cost of putting in these applications and the cost involved in fitting out before deciding whether the price you want is reasonable, and which still leaves them with making a profit on any re-sale.

From a legal point of view, it is certainly possible, and what would happen is that you would have to create 3 Leasehold titles, for each of the 3 Flats, and it would be wise for you to retain ownership of the Building itself. Alternatively, a Management Company could be set up, and the members of the Management Company would be yourself and the 2 other Flat owners. You as Freeholder or the Management Company would then be responsible for arranging the block Buildings Insurance for the building and overseeing any works/repairs/maintenance to the structural and communal parts.

So, it is not very straight forward to be honest, but is possible, provided the exercise of converting the building into 3 flats does not work out to be too expensive compared to the price you require for the "2 flats".

I hope this assists. If so, I would be grateful if you could rate my answer in the top right hand corner of your screen.

Kind Regards

Al

Customer: replied 16 days ago.
thank you so much. Your answer pretty much falls in line with what I thought but wanted to be sure. We are thinking of only selling one flat (once all of the above has been taken into account). I think our next step is to start talking to developers to see where we go from here.Thank you so much :)
Expert:  Aston Lawyer replied 16 days ago.

Thanks and Good luck!

If i have helped, please would you be kind enough to rate my answer. Kind Regards Al

Expert:  Aston Lawyer replied 16 days ago.

Hi Sharon, please don't forget to rate my answer if I have assisted.

Thanks Al

Expert:  Aston Lawyer replied 11 days ago.

Hi Sharon, please don't forget to rate my answer, thanks. Al