I suspect I know the answer to this but I just want to make sure. My wife's aunt (who is in a home now) is keen for her property to be let as a charity shop (rent free).
The wiring is in a dangerous state (original old rubber stuff). Would I be right in assuming that the wiring would have to be made safe first?
Tim
Yes. Also any gas burning appliances will need a safety test with regular (annual?) repeats. I think you also have to get an energy efficiency certificate but that might only be for residential letting. I also understand that any deposit you take from tenants is supposed to be held by an intermediary.
I doubt if offering it rent free will get you (her) off the hook on any such requirements but their cost should be able to be passed on. If you aunt is a higher rate taxpayer, then there might be some sort of gift aid arrangement where the charity can get some tax back against basic rate and your aunt can claim back marginal higher rate tax. Get proper advice and look at powers of attorney to save problems in the future.
Bob
I think we'll just declare it a non-starter to be honest. The house is in a very bad state of repair and would need an awful lot of expensive work to make it legal. Even then, the design of the house is so bad it would still be a very undesirable residential property although because of its siting, it has potential as a commercial premises (on a village high street in the centre of the town).
Thanks for the confirmation though.
Tim
You might also need planning permission for change of use too.
Theo
Would it be worth applying for change of use before selling? Many years ago it was a shop. Couldn't say how long ago but given it's history & location, I can't imagine that there would be huge objections. Would having outline planning permission (or whatever it's called in England) prior to sale significantly improve the sale value?
TIA
Tim
I had a place like that once - I had it as a shop, in a village where the property had been used as a shop, then a house, then a shop etc. When property is easy to sell - either because the location is desirable or the market is booming then I don't think it matters whether you sell as a shop or a house. My impression right now, in my part of the country, is that sales of residential properties are struggling but sales of commercial premises are struggling even more so.
If your aunt is completely self-financing with regard to her stay in a home then obviously she can do what she bloomin' well wants with her property but if her care is being paid for or subsidised by the local authority - or is likely to be so in the near future - then I'd suggest taking legal advice before doing anything. uk.legal.moderated would be a good place to start.
Nick
Depending on area, it can be difficult to obtain permission to change something like a shop to residential use - or indeed vice versa.
She's self financing but to add an extra twist, she only owns a portion of the property so although she's lived in it for over 90 years, she's not the only person involved in considerations of its disposal.
Tim
Depends where it is, but everywhere I've looked (not that I've looked much) in the SE commercial property is a lot less expensive than residential. Witness all the pubs being turned into blocks of flats.
OTOH if it's in Oxford St...
Theo
Not quite. Delph high street (near Oldham). ;-)
Tim
Dunno what it's like around there, but you could look into planning permission for maybe a ground floor shop plus flat(s) above/behind, if it's really in knock-it-down-and-start-again condition. Really depends what the commercial property market is like around there... I imagine it isn't doing terribly well. Count the pound shops or charity shops - should give you an idea.
Anyone know if Change Of Use is binding (ie you apply to change it into a shop and then change your mind... do you have to reapply to change it back to residential again)?
Theo
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