Landlord & Buy-to-Let Magazine | Page 11

For latest show news visit www.landlordshow.info advertisement feature The only way is up – who owns the roof space? For a property investor looking to maximise the value of an investment flat, the temptation is always to think about ways in which to increase its useable area. An obvious candidate is often the roof space above a top floor flat – particularly in a converted property. However, there are some points to watch out for: Who owns the roof space? The starting point has to be the lease. Leases are all different and there is no set format or convention. However, quite often areas like the roof space are excluded from the tenant’s ‘demise’ (the parts of the property that belong to them under the lease). In a lot of leases, the roof and foundations and other common parts are part of a general repairing responsibility that is covered by a service charge. These areas also tend to belong to the landlord and not to the individual flat owners. However, there are some types of lease (particularly in what might be termed ‘maisonette’ type properties where there are typically 2 or 3 flats) under which each property repairs its own ‘slice’ of the property. In these properties the demise clause often states that the tenant owns ‘all that top floor flat.’ In cases like this it may well be that the roof space (along with the exterior of the roof) is demised to the tenant of the top floor flat. If so, then in terms of ownership the hurdle has probably been crossed. However, it is important to realise that the lease must be read as a whole and you should take specialist advice before embarking on any major plans. For instance, just because you are responsible for the repair of an item under the terms of your lease does not necessarily mean that you own it. If you do not own the area in question, it will probably have to be purchased from the freeholder. If this happens then specialist valuation advice may be needed to assist in the negotiations. Can I develop? And if so, what else do I need to think about? Alterations in leasehold properties are a separate topic in themselves, but it is essential to be aware that even if you own the area in question, that this does not mean that you can necessarily alter it as you see fit. Whether you can do the work or not depends on what the lease says. If there is an absolute prohibition on works then a variation will need to be purchased to do the work. However, if the lease says that alterations are possible with the landlord’s consent then it may well be possible to carry out the work provided a