Non permitted sleep out
Question from Parimal updated on 4th May 2016:
I saw a house which I am thinking of buying - but it has a non permitted sleep out which consists of two bedrooms, a bathroom and a living room.
Is it a good move investing in a property with a non permitted sleep out? If not, how much would it usually cost to get Council consent for the sleep out?
Our expert Kris Pedersen responded:
It is hard to say how much it would cost to get consent for the sleep out as more information would be required in regards to the location and the property itself.
I'd generally say that you are best to work out what price you would be willing to pay for the property if it was legal, then find out what it is likely to cost you to make it legal and discount this amount (at least) to come to your maximum offer price.
Make sure if you proceed with purchasing the property that you declare everything to the insurance company and get sign off from them as well.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz