2 Condo Units Converted To 1 Unit

[Chris Colston]

SUBJECT TO: Condo Board Approval (that's the biggie), Removal of 1 kitchen, Structural inspection, Fire Marshal Inspection (may have compromised the fire wall between the units), Completion of conversion from 2 units to 1.

Hopefully there are similar sized units to compare to. Appraising each unit individually to come up with a combined total??? Nope. Because once combined, with one of the kitchens removed, you no longer have two units, you have 1 large unit.

You will also need to check with the condo association to determine if and how the monthly fee will be assessed.

I had a similar situation after the hurricanes last year. The owner of two adjoining units (he lived in 1, had tenants in the other) figured since the hurricanes had taken out the roof and the wall between the units he might as well attempt to combine them into 1 larger unit. The association said NO, that was not permitted by the recorded condo docs. The lender canceled the loan.

In your case, it will be the condo association and recorded docs that has the greatest weight on whether or not the two units can be combined.

 

[Walter Kirk]

After thinking about this subject it seems to me that a thorough highest and best use analysis is required. Oversized condo units may not be worth as much as the two component units.

 

[hastalavista]

Walter (or anyone else),

I have a serious question because I don’t know the answer:

How relevant is an HBU study after the conversion? Would HBU be the right analysis? The subject is a condo and remains a condo. I assume it has been legally transformed from “two units” to “one”. Other than a “condo”, what other Best Use is there? Is the analysis of an over-improved unit a HBU analysis?

 

[Lee Lansford]

Denis,

RE: H&B Use AFTER the conversion...


Is the MV higher converted (I'm assuming this is to include the removal of the 2nd kitchen and further alteration of the floor plan) or as two separate units?


Lee

 

[hastalavista]

Lee-

Looks like I misread the original post (the second time around-since I already opined once!).

My question assumed the unit had already been converted and now there is an HBU analysis trying to decide if the two separate units resulted in a higher MV than the one large unit. If so, is the current use not HBU? However, that’s not the case in the original post.

I do have a question, though, along this line. I’m going to do a little more research and then post it independently so as not to tie this thread up.

Thanks

 

[Lee Lansford]

Denis,

I'll look forward to the new string on this--or similar--topic.

Lee