
Back to Back Terrace with Loft Conversion – Rentable?
The article discusses the complexities and legalities surrounding the rental of a back-to-back terraced house with a loft conversion, particularly when the conversion may not comply with current building regulations. A new buy-to-let (BTL) investor, James, has identified such a property at an attractive price but is uncertain about its rentability, especially concerning the loft space which is accessible via a ladder rather than proper stairs. The loft room itself is well-finished with two Velux windows.
James's primary concern revolves around whether he can market the property as a two-bedroom house, with the loft conversion being an optional space for tenants, or if the existence of a three-storey structure automatically triggers additional regulatory issues. He is considering hiring a builder to assess the cost of upgrading the stairs to meet building regulations, but confusion stemming from online research prompts him to seek advice on the property's overall rentability.
Expert Mark Alexander, Founder of Property118, emphasizes that while a property's rentability is ultimately tied to its price, safety, mortgage suitability, and investment potential are distinct considerations. He highlights the need for more detailed information to provide specific guidance, implying that the lack of building regulation compliance could significantly impact these factors.
Another commenter, Joe Bloggs, suggests that to avoid mandatory licensing, the loft opening might need to be sealed or locked. Alternatively, substantial work would be required to bring the loft conversion up to standard, including structural reinforcements, improved insulation, strengthened flooring, proper access, and emergency escape provisions. He points out that this would involve a significant financial investment.
Mark Alexander clarifies that mandatory licensing typically applies only to properties with three floors and five or more tenants, suggesting that James's property might not immediately fall under these stringent requirements if it were to be rented to fewer occupants. However, the underlying issue of building regulation compliance for the loft conversion remains crucial.
Recardo, another contributor, shares personal experience with a two-story, four-bedroom house where a loft was converted into an en-suite bedroom. He explains that insurance companies often classify such properties as two-story, as the loft structure pre-existed its conversion. He advises James to verify if planning permission was granted for the loft conversion. If the conversion was a DIY job with a ladder access, upgrading it to meet regulations would be costly, potentially involving steel girders, roof joist enhancements, proper insulation, a conventional staircase, fire-proof doors, and wired-in smoke alarms on each floor. Without proper planning approval, Recardo suggests marketing the property as a two-bedroom house with a converted loft space for discretionary use (e.g., office), not as a third bedroom. He believes that even with this approach, the property could still command a higher rent than a standard two-bedroom house on the same street, without the legal and safety liabilities associated with marketing it as a three-bedroom property.
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