Product Focus: Lack of planning permission Background
Solution
The insured was purchasing a freehold property comprising a shop and a flat and, in the process, purchasing a new lease to the flat. However, the Local Authority Search revealed that the planning history only evidenced planning consent for use as a volunteer bureau and, therefore, the flat did not have the benefit of planning permission for residential use. The insured required cover against this risk in case the Local Authority took enforcement action against them.
Previous planning permission referred to the property as a flat and accommodation. There was also mention of its use as a residential dwelling. It was rerassuring that the Local Authority had, at some point, viewed part of the property as residential, or at least would be willing to accept a residential use. The enforcement period for a change of use from class B1 to residential is typically four years from the date the residential use commenced. As the use of the property as a flat had continued by the current owner since 2014, First Title was able to offer a policy, covering any enforcement action taken by the local authority for the lack / breach of planning permission.
Challenge Should the Local Authority carry out enforcement action, the insured would need to either get retrospective consent for the current use as a flat, or the Local Authority could insist that they change the use back to the authorised use as a volunteer bureau. This could potentially be costly for the insured and, depending on the action the Local Authority took, could mean they would no longer be able to use the property for residential purposes.
Call: +44 (0)207 160 8218 Email: online@firsttitle.co.uk Visit: www.firsttitleresidential.co.uk First Title Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. First Title Insurance plc is registered in England under company number 01112603. Registered office: First Title Insurance plc, ECA Court, 24-26 South Park, Sevenoaks, Kent TN13 1DU.
Leading Title Insurance 1260-0219