A loft conversion can add a lot of value to a property and the extra space it provides can completely change the way you use your home. There are, however, strict building regulations related to a loft conversion being classed as a livable space, such as a bedroom. Whether you are buying a house or selling one, having a loft conversion without the needed building regulations can cause financial, safety, and legal issues.
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A loft conversion that adds an extra bedroom to a home can have a big impact on the market price of a property. Being able to market it as a three-bedroom house instead of a two-bedroom, for example, can increase its value dramatically.
This increase in value only applies if the loft conversion has building regulations approval for use as a livable space.
Without building control sign-off, the loft conversion can't be marketed as a bedroom so you won't benefit from the extra value this could add to the property.
Discover: How Much Value Does A Loft Conversion Add
Often, a mortgage valuation will be based on information provided by the estate agent and it will be assumed by the valuer that any extensions or conversion meets planning permission and building regulations approval from the local authority.
In the case of unauthorised loft conversions, this can mean that the mortgage valuation is too high because it includes an additional living space that does not exist.
This issue may only be uncovered by the buyer during the legal enquiries stage. At this stage, the mortgage company may insist that building regulations approval for the loft is sought. Or they may insist that adherence to building regulations or indemnity insurance be added. We'll go into more detail about both these options later.
Cash buyers won't run into these mortgage valuation issues and are well within their rights to purchase the property as is, with the unapproved loft conversion in place. They will not have to apply for building regulations approval if they don't wish to.
Of course, if the buyer then goes on to sell the property, they will encounter these problems once more.
Building regulations exist for a reason. With loft conversions, they will cover aspects such as:
If the loft conversion doesn't meet these standards, then it could well be unsafe. This could lead to serious accidents or injuries.
Take a look: How To Insulate A Loft Conversion
An unapproved loft conversion may invalidate your building insurance so any damage that arises from it could leave you out of pocket.
You may also need building regulations indemnity insurance if you choose to keep the works unapproved as protection against council enforcement costs. We'll go into this in more detail later on.
There are two main situations where a loft conversion may not have approval to be used as a bedroom, one of which is an easier fix than the other.
This is the best-case scenario. In this situation, building regulations approval was sought and granted but the owner simply didn't submit a Final or Completion Certificate to show that the conversion was fully built. This process involves a council surveyor coming out and inspecting the work carried out to confirm that it follows building regulations.
In this case, the loft conversion would have likely been built in accordance with the building regulations of the time but without the final sign-off confirming it.
This is the worst-case scenario. In this situation, the owner has built an illegal loft conversion without any building regulations approval.
There is no way of knowing how safe this structure is and fixing the problem could end up being very costly.
Most loft conversions do not require planning permission from the local building authority. Instead, they will come under permitted development rights. These are regulations that allow you to make certain types of modifications to your property without having to gain permission. The changes will still need building regulations approval, however.
Some loft conversions, however, do require planning permission before they can be built. These are usually conversions that require major alterations to be made to the existing roof height or structure. A listed building or a property in a conservation area will also require planning permission before any type of external alterations are made, big or small.
If there is an illegal loft conversion that was built without building control approval and without planning permission and it is of a type that does not fall under permitted development then in some cases it may need to be removed.
Dig deeper: Do You Need Planning Permission For Loft Conversions
Whether you are a seller or a buyer in this situation, you will need to know how to obtain approval from the local authority to class the loft conversion as a bedroom. This will require building control sign-off, which can be a lengthy process depending on why the loft conversion didn't have approval in the first place.
If you are a buyer, you can make this a requirement of the sale or your mortgage lender may require it. If you are a seller, then going through this process can help make selling the property much easier and can grant you a higher market value.
The process for obtaining building regulations approval when all that's missing is the Completion Certificate is relatively easy. The approval was already granted when the structure was built. You just the final approval from a building control officer.
Your best port of call is to get in touch with your local authority planning department. In some cases, they will be happy to accept that the loft conversion was built in line with the building regulations of the time and that is enough. In this case, they will issue you with a building regulations Completion Certificate and then the loft conversion will be classed as a bedroom.
In other cases, they may require that the loft conversion bedroom be modified to be in line with current planning and building regulations before granting a completion certificate. Some regulations may have changed since it was originally built but it is likely that in most cases, the changes will be relatively small.
Getting approval for an unauthorised loft conversion can be more difficult. Going into this process, you will have no idea what the state of the loft conversion is and how far away from building regulations standards it is. You could get lucky and the conversion was built closely in line with building standards or you could have a loft conversion on your hands that is a complete liability.
If your loft conversion never had building control approval, you can apply for it well after the fact. This is the case whether you completed the work yourself or if you have bought a property with an unauthorised loft conversion.
In England and Wales, this is known as "retrospective building control approval" or "regularisation". In Scotland, it is a "Completion Certificate where no building warrant was obtained" (previously "letter of comfort").
In both cases, you will need to apply to your local authority. A local council building control surveyor will assess the loft conversion and see what does and doesn't meet building regulations. They will then advise you of what changes will need to be made to bring it up to standard.
Once these modifications are finished, you will be issued a completion certificate.
All of these steps will cost money but they can be worth it in the long run. Once your loft conversion is fully approved, the value of your property will increase and it will be more attractive to buyers. You can also rest easy with the knowledge that the structure is safe for all inhabitants.
It used to be "common knowledge" that any works completed without council building regulation approval could not have enforcement action taken against them if it was more than 12 months ago. This is no longer the case. Enforcement action can be taken on any unauthorised building works, regardless of when they were constructed.
Buyers will often require that sellers pay for building regulations indemnity insurance if there are unauthorised building works on the property. The insurance protects against financial losses related to enforcement action for the unapproved construction. It does not say anything about the quality of the work, whether it is safe, or if it follows building regs.
The insurance is a one-off premium and it lasts indefinitely.
Once you have a Completion Certificate, whether this is the only step you need to take or if you have needed to apply for retrospective building control approval first, your loft conversion can now be used as a bedroom. And it can also be marketed as such when you sell the property. This will draw a lot more value than a non-habitable loft conversion that can't be called a bedroom.
We are experts in loft conversions. If you find yourself in a difficult position with a loft conversion that doesn't have building control sign-off, we can help. We understand the complexities of navigating this issue and can help to guide you through it. And if your loft conversion doesn't comply with current building regulations, we can get it up to proper standard so that it will get approval as a habitable space.
Learn more: How Do You Know If You Can Have A Loft Conversion
If your loft conversion complies with building regs and has full approval, you can use it and market it as a bedroom. This can give you more living space and drastically increase the value of the property. But if it doesn't have this approval then the extra room can't be marketed as such and you are leaving yourself open to financial, legal, and safety problems.
Getting it approved as a bedroom will depend on why it doesn't have the approval in the first place. If there was building control approval but it wasn't signed off when the work was completed, all you need is to get the Completion Certificate. If it was an illegal loft conversion and didn't abide by building regulations, you will need retrospective building control approval.
