A study reveals that in 2021 in Canada, 1 in 6 residential houses owned by individuals born in the 1990s were co-owed with their parents.
Co-ownership is preferred by many people because they can then share any associated costs with someone else. It also makes it easier to earn money if you want to offer it for rental. Co-ownership even gives you more security as you have a home to go to in case of an emergency.
What do you do when you want to do some home renovation, yet you live in a shared house? What are the necessary documents? This article written with the help of CSG Renovation will tell you everything you need to know.
Can You Make Renovations in a Shared Ownership Home?
Shared ownership is a type of ownership where you only purchase a share of a property. If you cannot afford to get a mortgage for the full ownership of a home, then you can only pay a mortgage on the property percentage you own. You also pay rent to the landlord for the share you own in the home.
Shared ownership houses can be changed to an extent. For instance, if you want to make minor modifications, like refurbishing, painting, or decorating the home, you can do it, as the landlord isn’t responsible for this.
But before you make any changes, don’t forget to check your lease. Things that you can do without approval include painting walls or refurbishing some wall tiles in the bathroom. You aren’t allowed to do anything that significantly alters the house without permission, such as installing new flooring or making large structural changes. To do this, you need to obtain permits.
You should discuss your desired projects with your landlord and check your contract, especially considering the property’s value will shift in the process if you purchase shares of 5 or more at some point.
The Building Code for Renovations of Shared Ownership Houses
Building code requirements vary depending on where you live in Canada. For example, in Ontario, you will need to:
- Get the correct building permits
- Create a construction or renovation design that meets the Building Code
- Meet the necessary building inspections while working
- Have a licensed contractor work on the renovation
You should also check with your municipal planning department if you want to make any modifications to a property, like creating a separate self-contained unit. There are certain construction standards that you must follow to add a new unit in the bathroom and kitchen. Talking to an architect, a professional designer, or engineer in your area is crucial before proceeding with the second unit.
What Documents Do You Need to Renovate a Shared Ownership Home?
Renovating a house can be costly depending on how complex the project is and how big the changes are. If you meet the criteria, your plan may qualify for the Canada Greener Homes Grant, which will offer grants of up to $5,000 to over 700,000 qualifying properties.
Renovating a shared ownership home requires a permit, and that’s the first thing you must focus on. But to obtain your building license, you’ll need the following documents:
- Proof you paid the fee for the building permit
- Construction drawings
- An application form
- Supporting documents and forms that your municipality requests (they vary from one municipality to another)
After filling out your application and submitting it, it will take up to ten business days to get a response on whether or not it was approved.
In addition to gathering the necessary permits for the renovation work, you will also go through the stage of discussing the desired changes with the other owners and see if they approve. Your communication skills come into play here. The fate of the renovations falls on your shoulders, as you must be able to present the arguments in a way that clearly emphasizes the benefits this remodeling will bring.
The Bottom Line
Are you ready to renovate your co-owned property? Talk to your landlord about it first and collect documents for building permits. Also, discuss the matter with your local municipality and the other co-owners to ensure you can proceed legally and safely.