As a landlord owning commercial properties, it can be difficult to get people interested in the premises when so many are going out of business and less and less need office space. However, the housing market is booming, so have you thought of converting?
If it’s crossed your mind, but you thought it may be too much hassle, perhaps you’re not aware that you no longer need planning permission to covert your commercial property into a residential one. In 2013 many landlords converted their properties into residential properties, so what should you consider before jumping on the band wagon?
First and foremost, update your insurance policy. If you are already a residential landlord, you will need to take out commercial property insurance for the offices until they have been fully converted. While the conversion is in progress you will need conversion insurance to protect the work which is going on as well as the property itself. The insurer will need to be informed exactly what is happening and anything that will contribute to the conversion.
You will have to consider your circumstances; in some cases you may need conversion insurance or unoccupied insurance. It is always best to speak to your insurer to make sure you are taking the right precautions. UKinsuranceNET offer unique landlord polices to help you manage a varied portfolio.
It is also important for you to inform your insurance provider of the change in reinstatement value. This is so your property is protected for what it is fully worth, your provider will need this information to update your policy, this may also change your premiums. For more information on reinstatement value, you can read the-difference-in-market-value-and-reinstatement-value/.
Lastly, if you’re lucky enough to have tenants lined up before the conversion is complete, you can insure ‘loss of future rent’ with us at UKinsuranceNET. If you haven’t dealt with residential property before, you should learn that it is vital to protect your rent and have a signed contract.
We advise you to inform your insurance providers of any changes to stay safe and ensure that if the worst should happen, you’re covered.
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