Illegal extension nightmare: how a greedy landlord ended up in court and £43K out of pocket

Judge condemns company’s reckless disregard for law and tenants.
A landlord looming over a house and throwing papers around

A London landlord and his property company have been fined over £43,000 after illegally converting a Putney home into a multi-occupancy property without planning permission and ignoring enforcement action for nearly a year.

On March 24, 2025, Wimbledon Magistrates Court found Charles Margulies, director of BMR Hemini Ltd, guilty of breaching planning control following the unauthorised extension and conversion of a residential property in Putney into a House in Multiple Occupation (HMO).

The court heard that Margulies’ company, which operates more than 200 rental properties across London, failed to obtain planning permission for the construction and only began demolishing the extension nine months after the legal deadline — and only after being summoned to court.

Wandsworth Council began investigating the property after receiving complaints from neighbouring residents about the large extension, which had been built without prior planning approval. A retrospective planning application submitted by BMR Hemini was refused by the council, which then issued an enforcement notice requiring demolition of the unauthorised structure.

Landlord was ordered to demolish illegal extension Pic Wandsworth Council
Continued to rent out property

Despite the notice, the company appealed to the Planning Inspectorate, an appeal which was ultimately dismissed. Even after the failed appeal, BMR Hemini continued to rent out the property and claimed it could not comply with the demolition order because a tenant was already living in the illegal extension.

Council officers described the situation as a clear case of a landlord attempting to bypass local planning law in pursuit of rental income. After months of inaction, the council launched criminal proceedings under the Town and Country Planning Act 1990.

In court, District Judge Devlin criticised the company’s conduct, particularly the decision to move a tenant into the property after enforcement action had already begun. The judge warned that such behaviour — knowingly placing tenants into accommodation that was subject to demolition — was “reckless” and showed “blatant disregard” for legal obligations.

Margulies and BMR Hemini Ltd were fined £16,000 and ordered to pay Wandsworth Council’s legal costs of £23,554, along with a £3,600 victim surcharge — bringing the total penalty to £43,154.

Council Leader Simon Hogg said the case sent a strong message to landlords across the borough:

“All of the actions from this landlord clearly show that they cared more about rental income than following the rules. The outcome of this case sends a clear message that we will not tolerate breaches of planning control in Wandsworth which ignore the impact such actions have on neighbours.”

Wandsworth Council said it would continue to monitor the property and pursue compliance in full. Officials are also reviewing other properties linked to BMR Hemini Ltd to ensure that similar violations are not taking place elsewhere.

Court documents for this case have not yet been made publicly available. However, residents concerned about unlawful property conversions or planning breaches can contact the council’s planning enforcement team via wandsworth.gov.uk.


Correction and Apology:

This article originally published on Friday 11 April stated that Bernard Margulies was the landlord involved in the planning enforcement action described above. This was incorrect. The individual who was fined was Charles Margulies. We sincerely apologise for this error and any distress or confusion it may have caused. The article has been updated to reflect the correct information.

The original version was based on a press release issued by Wandsworth Council and attributed to Council Leader Simon Hogg, which incorrectly named Bernard Margulies. That release has since been removed from the council’s website. In correspondence with us, the council has acknowledged the mistake and expressed regret for the error. We are informed the matter is under internal review, though the council has said it is unable to provide further details at this stage.

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