It is important to understanding the complexities of pre-1963 investment properties in order to maximise returns and minimise risks. Call Kelly Bradshaw Dalton today for advice on Pre ’63 properties.
Pre-1963 investment properties are those which have been divided into units before the Planning & Development Act of 1963 came into force. Such properties are not required to meet current planning and building regulations, and are often high density and high yielding investments. To establish the pre-1963 status of a property, a strong declaration of title from various owners throughout the years is crucial, demonstrating that the property has been divided into specific units since before 1963.
In addition to these declarations, it is prudent to gather extrinsic evidence to satisfy potential inquiries from Local Authorities. This can include photographs of the property at the time of acquisition, the presence of multiple doorbells or separate electricity meters, all of which can be used to demonstrate the property’s pre-1963 status.
Although a solid declaration of pre-1963 status can protect the owner from being required to revert the property to its original state, it is still possible for third parties to lodge complaints with the planning office’s enforcement section. In such cases, having sufficient evidence, such as photographs and extrinsic documentation, can help owners defend against allegations and prove the property’s pre-1963 status.
When providing declarations, it is essential to explicitly state the number of units within the property. This can help prevent misinterpretations or disputes that may arise from ambiguous declarations, such as those stating “multiple use”.
Non-Principal Private Residence (NPPR) tax was in place between 2009 and 2013 and applied to properties that were not an owner’s primary residence. It is crucial to obtain an NPPR Certificate of Discharge for each unit within a multi-unit property, as failure to pay NPPR can result in significant liabilities.
Similarly, Local Property Tax (LPT) regulations require each unit within a property to have its own LPT property ID and payment history. Ensure compliance by acquiring and maintaining proper documentation for each unit.
While pre-1963 investment properties are not subject to current building and planning regulations, they must still adhere to the Minimum Standards for Housing Regulations. This ensures that rental properties are maintained in a suitable condition for tenants. Additionally, any significant refurbishments must comply with current building regulations, particularly regarding fire safety. Prior to undertaking any extensive renovations, it is advisable to consult with a fire safety expert to assess potential costs and ensure compliance with regulations.
In summary, successfully navigating the complexities of pre-1963 investment properties requires a thorough understanding of the legal and regulatory landscape. By obtaining robust declarations, maintaining comprehensive documentation, and adhering to housing and tax regulations, investors can maximize returns while minimizing potential risks.
If you wish to get a free valuation on a pre ’63 property, would like an appraisal for sale or would like information on our lettings and management services, contact Kelly Bradshaw Dalton today.