They are probably happy to take your premium but would try everything to walk away from paying out on an unapproved use.
Received council letter re. unapproved granny flat (Campbeltown,NSW) - what can I do?
- Thread starter kristaje
- Start date
They are probably happy to take your premium but would try everything to walk away from paying out on an unapproved use.
Thought I'd provide an update on my discussion with the council....
I talked to Council Building Surveyor (thanks Savanna100 for the tip) and his advise was to:
1. Reply to the notice in writting asap, stating that I have received and acknowledge it, and am working towards getting an approval.
2. Come personally to council to see the Duty Planner to discuss lodging a DA for the structure. This includes providing some drawings, as well as rectifying any issue that council may see with the space - to be approved as a living space. I think this is similar to the process you went through handyandy.
Still no guarantee that it'll be approved, but things are looking a bit more optimistic now, as at least both parties are in solution mode.
Plan to see tthe Duty Planner tomorrow, fingers and toes crossed this will work out well
Yes I have. The fine letter from SRO arrived together with the first letter.
We can, but the letter mentioned a couple of things to rectify like removing kitchen (couldn't remember the other), so I believe I'll still need to do these even if not renting gf separately. Also it'd be quite a hit for your yield on the property
Shhhhhh.........perish the thought!
Thanks again All, will keep you updated on how things go.
I talked to Council Building Surveyor (thanks Savanna100 for the tip) and his advise was to:
1. Reply to the notice in writting asap, stating that I have received and acknowledge it, and am working towards getting an approval.
2. Come personally to council to see the Duty Planner to discuss lodging a DA for the structure. This includes providing some drawings, as well as rectifying any issue that council may see with the space - to be approved as a living space. I think this is similar to the process you went through handyandy.
Still no guarantee that it'll be approved, but things are looking a bit more optimistic now, as at least both parties are in solution mode.
Plan to see tthe Duty Planner tomorrow, fingers and toes crossed this will work out well
Yes I have. The fine letter from SRO arrived together with the first letter.
We can, but the letter mentioned a couple of things to rectify like removing kitchen (couldn't remember the other), so I believe I'll still need to do these even if not renting gf separately. Also it'd be quite a hit for your yield on the property
Shhhhhh.........perish the thought!
Thanks again All, will keep you updated on how things go.
Thought I'd provide an update on my discussion with the council....
I talked to Council Building Surveyor (thanks Savanna100 for the tip) and his advise was to:
1. Reply to the notice in writting asap, stating that I have received and acknowledge it, and am working towards getting an approval.
2. Come personally to council to see the Duty Planner to discuss lodging a DA for the structure. This includes providing some drawings, as well as rectifying any issue that council may see with the space - to be approved as a living space. I think this is similar to the process you went through handyandy.
Still no guarantee that it'll be approved, but things are looking a bit more optimistic now, as at least both parties are in solution mode.
Plan to see tthe Duty Planner tomorrow, fingers and toes crossed this will work out well
Yes I have. The fine letter from SRO arrived together with the first letter.
We can, but the letter mentioned a couple of things to rectify like removing kitchen (couldn't remember the other), so I believe I'll still need to do these even if not renting gf separately. Also it'd be quite a hit for your yield on the property
Shhhhhh.........perish the thought!
Thanks again All, will keep you updated on how things go.
you wouldnt have happen to purchased title insurance or whatever it is from ur conveyancer when u got the place? (i havent really read the post, but im presuming it had the granny flat when u got it). That insurance covers the cost of replacing illegal structures etc.
Unapproved Granny Flat in Campbelltown City Council
I was looking at a property to buy in the Campbelltown area and it has a unapproved 1 bedroom granny flat.
Basically, the old clad garage and storage area was converted to a Granny Flat.
It meets all of Campbelltown CC's requirements for an outbuilding but does not meet the setback for rear boundary since the building is less then 5 metres from the rear boundary.
Reading the Affordable Rental Housing SEPP, it states that the local councils setback requirement need to be met in order to be approved as a granny flat by a private certifier.
If both could be rented out separately, the yield would be quite good at around 8.5%, but am not sure about purchasing a property with an unapproved building structure.
Do you guys think its worth pursuing?
I was looking at a property to buy in the Campbelltown area and it has a unapproved 1 bedroom granny flat.
Basically, the old clad garage and storage area was converted to a Granny Flat.
It meets all of Campbelltown CC's requirements for an outbuilding but does not meet the setback for rear boundary since the building is less then 5 metres from the rear boundary.
Reading the Affordable Rental Housing SEPP, it states that the local councils setback requirement need to be met in order to be approved as a granny flat by a private certifier.
If both could be rented out separately, the yield would be quite good at around 8.5%, but am not sure about purchasing a property with an unapproved building structure.
Do you guys think its worth pursuing?
No way,but look at it this way when you have a problem any problem and you ring up the insurance company you use,they will ask several question upfront,also a private certifer can only work from the slab-frame and final,bit hard when everything is clad,afterall paint and paper cover everything..willair..
This is the pic of the granny flat.
Uploaded with ImageShack.us
As you can see, it doesn't meet the required side setback of 0.9 metres and the rear setback of 5 metres.
I was reading in another post that Brazen, was able to get a building certificate for an unapproved granny flat. http://www.somersoft.com/forums/showthread.php?t=55160&highlight=unapproved
Also, with regards to insurance, its been mentioned that Title insurance should cover unapproved building works. Will Title insurance payout even if the purchaser knows that there is an unapproved building on the property, prior to purchase?
Also, how do the banks deem these sorts of properties. In the application, will they take into account the rental income for the granny flat?
Thanks
Uploaded with ImageShack.us
As you can see, it doesn't meet the required side setback of 0.9 metres and the rear setback of 5 metres.
I was reading in another post that Brazen, was able to get a building certificate for an unapproved granny flat. http://www.somersoft.com/forums/showthread.php?t=55160&highlight=unapproved
Also, with regards to insurance, its been mentioned that Title insurance should cover unapproved building works. Will Title insurance payout even if the purchaser knows that there is an unapproved building on the property, prior to purchase?
Also, how do the banks deem these sorts of properties. In the application, will they take into account the rental income for the granny flat?
Thanks
hi
my view first have a chat with council to find a local external town planner.
next they can put in a da or a section 96 to the old da if its still live.
next they will know most of the people in council that can help and they will drive you thru the council maze
campbelltown is not a huge council and they are very co operative not like ashfield or leichhart so if you get some one on the case taht understands the internals you should not have a big problem
being approved or not is not the issue here
its how to solve the problem
council will assist as long as you hit them here it hurts and as they come up to breath tell them how to get out of this problem
at the end of the day most are just paper pushers they wish to push the paper onto someone elses desk and off theirs and any reason to do that they will
and a external planner knows how and what to do in that regard.
you could have a unapproved 27 storey building and thats fine with a good external planner who know what and how to work the system
and remember councils are systems
not advice just a view
my view first have a chat with council to find a local external town planner.
next they can put in a da or a section 96 to the old da if its still live.
next they will know most of the people in council that can help and they will drive you thru the council maze
campbelltown is not a huge council and they are very co operative not like ashfield or leichhart so if you get some one on the case taht understands the internals you should not have a big problem
being approved or not is not the issue here
its how to solve the problem
council will assist as long as you hit them here it hurts and as they come up to breath tell them how to get out of this problem
at the end of the day most are just paper pushers they wish to push the paper onto someone elses desk and off theirs and any reason to do that they will
and a external planner knows how and what to do in that regard.
you could have a unapproved 27 storey building and thats fine with a good external planner who know what and how to work the system
and remember councils are systems
not advice just a view
No it won't.
Some lenders will and some lenders will not. It also depends if MI is involved - sometimes the lender will but their MI won't.
This is where the experience of a good MB comes in handy.
title insurance
The title cover will cover you for unknown risks for a set premium. It can also cover you for 'known risks' ie illegal/not approved structures for an additional cost. You may not 'know 100%' the g/flat is not approved so you should be able to take out this insurance for quite cheap, say $500.....
Try First Title insurance
The title cover will cover you for unknown risks for a set premium. It can also cover you for 'known risks' ie illegal/not approved structures for an additional cost. You may not 'know 100%' the g/flat is not approved so you should be able to take out this insurance for quite cheap, say $500.....
Try First Title insurance
He knows so it has to be disclosed.
Thanks guys.
Still not sure whether or not to buy the place. On one hand, theres the risk that the council will order to demolish the g/f but on the other hand the reward of having a good yield with a house for under $300k seems hard to pass up (the house itself without the granny flat is a good buy at this price, but the yield isn't that flash in this case).
With regards to Title Insurance, I think they cover the known risk on a case by case basis. That is what I have read from Stewart Title Insurance.
The property has also been on market for a couple of months, which makes me think that other potential buyers are also spooked.
Should I just negotiate a better deal with the agents now that I know that there is this problem with the property?
Still not sure whether or not to buy the place. On one hand, theres the risk that the council will order to demolish the g/f but on the other hand the reward of having a good yield with a house for under $300k seems hard to pass up (the house itself without the granny flat is a good buy at this price, but the yield isn't that flash in this case).
With regards to Title Insurance, I think they cover the known risk on a case by case basis. That is what I have read from Stewart Title Insurance.
The property has also been on market for a couple of months, which makes me think that other potential buyers are also spooked.
Should I just negotiate a better deal with the agents now that I know that there is this problem with the property?
If you still want to go ahead with the property - Yes.
Just make sure your SANF is not an issue.
kristaje, Is this resolved now ?
Have read loads about granny flats but have come across something slightly different. A house (quite large) that is split in half. Both are completely separate except for the common wall they share. Land size is large enough for 2 residences (900sqm) but what are the regulations as far as the set up goes? Is there a minimum dwelling size, same as the granny flat?
Also, quick question re 149(2), why would someone selling a property order one of these done? In one spot it also reads: Effect: 2(b) – Residential B Zone. Any clue what this means?
Can you get a Sec149 on a structure before it is built? (plans or something of thew sort) or does one just make structural changes and apply for the 149 after?
Thanks and have a happy Sunday!
Also, quick question re 149(2), why would someone selling a property order one of these done? In one spot it also reads: Effect: 2(b) – Residential B Zone. Any clue what this means?
Can you get a Sec149 on a structure before it is built? (plans or something of thew sort) or does one just make structural changes and apply for the 149 after?
Thanks and have a happy Sunday!
If the common wall is not fire rated (brick) then it is unlikely to be approved as 2 sep. dwellings. But there are a few of these around.
They need to include it in the contract of sale - it is a legal requirement.
Yes. In our neck of the woods it means higher density low rise zoning - villas and the likes. But really all you have to do is visit your council's web-site and have a read. Alternatively, read the 149 Certificate in the contract of sale - it explains fully what can & can't be done in that particular zoning.
It is called a 149 Certificate. It is available on vacant land onwards.
To make structural (approved) changes you apply for a BA/DA. I don't know why you'd bother with a 149 pre or post structural changes as an owner or a seller.
Any council in NSW will have info like this:
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