SDLTM00385 - Scope: what is chargeable: land transactions: Residential Property– – Not suitable for use as a dwelling (uninhabitable dwellings)

Whether a property has deteriorated or been damaged to the extent that it no longer comprises a dwelling is a question of fact and will only apply to a small minority of buildings. A property might not be considered “suitable for use” as a dwelling (sometimes referred to as uninhabitable) on the basis that it has been damaged to the extent that normal repair work, replacement or modernisation cannot resolve the issues.

However, there is a clear distinction between a derelict property and a dwelling that is in need of modernisation, renovation or repair, which can be completed without first addressing structural defects that would make the property dangerous to work on and or live in. If the building was used as a dwelling at some point previously, it is fundamentally capable of being so used again (there being no lack of structural or other physical integrity preventing this). If permission to use as a dwelling continues to exist at the effective date of transaction, a building will be considered suitable for use as a dwelling, even if not ready for immediate occupation.

Examples of repairs, renovations and issues that will not make a property unsuitable for use as a dwelling include, but are not limited to:

· The temporary removal of bathroom or kitchen facilities before sale.

· Substantial repairs required to windows, floors, or a roof.

· Replacement boiler and pipework or

· Unsafe electrical wiring.

· The need to switch services back on.

· An infestation of pests.

· Damp proofing required or plasterboard damage.

· Flood damage.

These are all common issues which can be rectified relatively quickly and constitute common improvements and/or maintenance attached to residential properties. They do not constitute structural changes to the dwelling that would mean the building is no longer suitable for use as a dwelling.

Examples of when a property will be considered not suitable for use as a dwelling include:

· Where repair work cannot be undertaken safely because of high levels of asbestos that cannot be removed without deconstructing the property.

· Where there is high radioactive pollution present.

· Where there is a high probability of walls collapsing.

· Where there are hazards present that would cause a local authority to issue a prohibition notice restricting use of the premises.