Auction property possibly mis advertised

[Coolestchip]

Hi all,


Firstly, this is a great forum and kudos to everyone helping!
I recently purchased a 2 bed ground floor apartment in a new built apartment block via Auction. It was being sold by LPA Receivers ( so we thought of this to be a case of repossession). A tenant is already living at the house, and they didn't provide a tenancy agreement, so we considered that problem and factored in our bid.
Now, after having won the property, i got to know that it was indeed a commercial property ( B1 use ) when built but the owners somehow converted it to a 2 bed apartment. I'm unable to verify this as I cannot see any planning authority records etc, and neither my conveyancing company.

So my question is - Can an Auction company actually advertise a commercial property as residential and get away with it? Or is theres Do I have any legal basis to go after them if this planning becomes an issue.

[MIKE770]

Have you checked under town & planning office to see registered change of use under the Act? what was the original business use? as different categories are listed and .?

who were the Auctioneers> and their sales pack info?

[islandgirl]

Hiow long has it been residential?

[Coolestchip]

Thanks for the quick replies folks,

I have checked with the town and planning websites, nothing is coming up there. There is a planning permission submitted for a similar commercial space (one next door) but that was withdrawn in 2014.

Also did some digging with local estate agents. They say the apartment blocks has about 50 flats and 5 commercial spaces. The commercial spaces were initially sold with some of the apartments as part of some startup scheme (so people can live above in apartment and work below on the commercial space). However, people started renting out the commercial space for rent (in contravention to the leases). I suspect this is what happened to this so called apartment as well.


The legal pack from the seller solicitor clearly says that the class of use is B1, which I believe is commercial. Now, the special conditions from them say that there is a tenant staying at the property and paying rent directly to the borrower - they haven't provided any tenancy agreement, and the tenant isn't engaging me at all right now. So Im really wondering how/when they got the class of use changed, and if that hasn't happened yet (most likely) then isn't this a misrepresentation on the Auction House behalf. (Auction Company: Auction House).

Let me know if anyone would like to review another doc. And again, thanks a lot for the support folks.

[echat11]

Here's some info, but you need to nail down the facts, so everything is 'factual' -

Not a recommendation (just info) - https://cunningtons.co.uk/property-auction-problems/

[atticus]

In our area, a lot of offices have been converted to flats. I understood that there was a liberalisation of planning law to permit this (I am no expert in this area).. Does this help:

https://www.planninggeek.co.uk/gpdo/...f-use/class-o/

[islandgirl]

Yes permitted development of office to residential

[Coolestchip]

Thanks folks, I'm having a look at these planning laws.

[Coolestchip]

Update -

Since this is a flat/ apartment, the Freeholder ( Landlord) ultimately has the right to decide on the Class of the property. Hence, now we are on the mercy of this guy. Trying to get in touch, but to no avail for now.

On the point of Auction House - they are clearly saying that its not their responsibility that we think they misled by advertising a commercial property as residential. My solicitor agrees that I have a basis to sue them, but it still doesn't take away my responsibility for buying this property and complete the transaction. So we are back on square one.

[Coolestchip]

Final update.

Auction house never agreed for misrepresentation, I spoke with a few solicitors - some said that there is a definite case for it, while some advised that auction people will get away since the fine print says the right thing. Anyhow, major lesson learnt. I ended up completing the transaction, so now will see what comes next.

Thanks all for support.