Do I need a HIP
Discussion
Another HIP Question!
Well it relates to my father in law rather than me. He is putting his house on the market and the HIP provider has said that he needs two HIP's! One for His main house and one for the attached annexe!
This sounded a bit odd to me (I am doing some research into the opinions on HIPs at the moment) so did a bit of digging. The DirectGov website states the following:
You don’t need a HIP for:
•properties where there is no marketing, for example if you are selling to a member of your family
•non-residential properties
•properties limited by law to use as holiday accommodation or occupation for less than 11 months per year
•mixed sales, for example a shop with flat
•sales of portfolios of properties, for example selling two properties together
•properties not being sold with completely vacant possession, for example with a sitting tenant
•unsafe properties and properties due to be demolished
•properties sold through the ‘Right to Buy’, ‘Right to Acquire’ and ‘Social HomeBuy’ home ownership schemes
Looks like he might have been misled, though there seems to be some grey areas! The annexe is allowed to be occupied for 365 days a year but must not be used as main residence, so I’m guessing the 'Holiday accommodation' bit is not applicable! So does this mean that as it is two separate properties (pays two lots of council tax) it is a 'portfolio of properties' meaning that he does not need a HIP at all?
I’ve checked the The Home Information Pack (No. 2) Regulations 2007 (see below) and I am still unclear! Any experts in the house tonight who may be able to help me out?
Exception for seasonal and holiday accommodation
27. The duties under sections 155 to 159 of the 2004 Act do not apply in relation to a property
where—
(a) the dwelling-house which is or forms part of the property is subject to a condition
imposed under section 72(1)(a) of the Town and Country Planning Act 1990 regulating
the use of the dwelling-house to either or both of the following—
(i) occupation for less than 11 months in any 12 month period; or
(ii) use only for holiday accommodation; and
(b) that regulation of the use of the dwelling-house is clear from the manner in which the
property is marketed.
Exception for portfolios of properties
30.—(1) Subject to paragraph (2), the duties under sections 155 to 159 of the 2004 Act do not
apply in relation to a property where—
(a) the dwelling-house which is or forms part of the property is to be sold with one or more
other dwelling-houses;
(b) the other dwelling-houses mentioned in sub-paragraph (a)—
(i) are available for sale with vacant possession; and
(ii) are not dwelling-houses to which Part 5 of the 2004 Act applies by virtue of section
171(2) of that Act;
(c) at the time at which the first point of marketing would have occurred (were sections 155
to 159 of the 2004 Act to apply but for this regulation), the seller does not intend to
accept an offer to buy any one of those dwelling-houses in isolation from another; and
(d) the seller’s intention not to accept such an offer is clear from the manner in which the
dwelling-houses are marketed.
(2) Paragraph (1) does not apply where the other dwelling-houses mentioned in sub-paragraph
(a) are ancillary to the dwelling-house.
Well it relates to my father in law rather than me. He is putting his house on the market and the HIP provider has said that he needs two HIP's! One for His main house and one for the attached annexe!
This sounded a bit odd to me (I am doing some research into the opinions on HIPs at the moment) so did a bit of digging. The DirectGov website states the following:
You don’t need a HIP for:
•properties where there is no marketing, for example if you are selling to a member of your family
•non-residential properties
•properties limited by law to use as holiday accommodation or occupation for less than 11 months per year
•mixed sales, for example a shop with flat
•sales of portfolios of properties, for example selling two properties together
•properties not being sold with completely vacant possession, for example with a sitting tenant
•unsafe properties and properties due to be demolished
•properties sold through the ‘Right to Buy’, ‘Right to Acquire’ and ‘Social HomeBuy’ home ownership schemes
Looks like he might have been misled, though there seems to be some grey areas! The annexe is allowed to be occupied for 365 days a year but must not be used as main residence, so I’m guessing the 'Holiday accommodation' bit is not applicable! So does this mean that as it is two separate properties (pays two lots of council tax) it is a 'portfolio of properties' meaning that he does not need a HIP at all?
I’ve checked the The Home Information Pack (No. 2) Regulations 2007 (see below) and I am still unclear! Any experts in the house tonight who may be able to help me out?
Exception for seasonal and holiday accommodation
27. The duties under sections 155 to 159 of the 2004 Act do not apply in relation to a property
where—
(a) the dwelling-house which is or forms part of the property is subject to a condition
imposed under section 72(1)(a) of the Town and Country Planning Act 1990 regulating
the use of the dwelling-house to either or both of the following—
(i) occupation for less than 11 months in any 12 month period; or
(ii) use only for holiday accommodation; and
(b) that regulation of the use of the dwelling-house is clear from the manner in which the
property is marketed.
Exception for portfolios of properties
30.—(1) Subject to paragraph (2), the duties under sections 155 to 159 of the 2004 Act do not
apply in relation to a property where—
(a) the dwelling-house which is or forms part of the property is to be sold with one or more
other dwelling-houses;
(b) the other dwelling-houses mentioned in sub-paragraph (a)—
(i) are available for sale with vacant possession; and
(ii) are not dwelling-houses to which Part 5 of the 2004 Act applies by virtue of section
171(2) of that Act;
(c) at the time at which the first point of marketing would have occurred (were sections 155
to 159 of the 2004 Act to apply but for this regulation), the seller does not intend to
accept an offer to buy any one of those dwelling-houses in isolation from another; and
(d) the seller’s intention not to accept such an offer is clear from the manner in which the
dwelling-houses are marketed.
(2) Paragraph (1) does not apply where the other dwelling-houses mentioned in sub-paragraph
(a) are ancillary to the dwelling-house.
Mojooo said:
Thanks for that Mojoo, problem is it still isnt clear as to weather they are two seperate properties (portfolio) or one property which would then only require one HIP!As per 6.33 of that guidance I would suggest it is NOT a portfolio. Is it a 'granny flat' type thing?
That exception means you don't need a HIP - AT ALL - i.e if you were selling 10 houses none of them would need a HIP. So I don't think the portfolio exception can be applied here.
But that then suggests to me you only need one HIP which covers them both as long as you are selling them together and will not seperate them and they are both empty.
That exception means you don't need a HIP - AT ALL - i.e if you were selling 10 houses none of them would need a HIP. So I don't think the portfolio exception can be applied here.
But that then suggests to me you only need one HIP which covers them both as long as you are selling them together and will not seperate them and they are both empty.
Mojooo said:
As per 6.33 of that guidance I would suggest it is NOT a portfolio. Is it a 'granny flat' type thing?
That exception means you don't need a HIP - AT ALL - i.e if you were selling 10 houses none of them would need a HIP. So I don't think the portfolio exception can be applied here.
But that then suggests to me you only need one HIP which covers them both as long as you are selling them together and will not seperate them and they are both empty.
It is a 'granny flat type thing' cant be used as a permannet residance but can be occupied 365 days of the year! Im guessing one EPC will cover the both as well?That exception means you don't need a HIP - AT ALL - i.e if you were selling 10 houses none of them would need a HIP. So I don't think the portfolio exception can be applied here.
But that then suggests to me you only need one HIP which covers them both as long as you are selling them together and will not seperate them and they are both empty.
You need to check the deeds for the main property to which the 'granny flat' is attached. We've just bought a place that has such a situation (old stable was converted to garage and subsequently converted to granny flat). It's self contained to the point where there is a front door and a door for access into the main house. The deeds state that the two residential areas are classed as a single property and that they cannot be sold off separately. We purchased on the back of a single HIPS / Home Report package.
Ours has a single feed electricity / gas and two boilers / fuse boards. To sell separately, bar access issues, we'd probably need to isolate these.
If you aren't allowed to sell off the two pieces separately I can only assume you only need one HIPS. If you can sell separately then they are two properties and you'd probably need two HIPS.
Dr Rick
Ours has a single feed electricity / gas and two boilers / fuse boards. To sell separately, bar access issues, we'd probably need to isolate these.
If you aren't allowed to sell off the two pieces separately I can only assume you only need one HIPS. If you can sell separately then they are two properties and you'd probably need two HIPS.
Dr Rick
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