It is in fact being change from one place of residence to two and upstairs will be accessible via externally built stairs accompanied by a new entrace.
The supply of electricity and water however will not be changed at the moment (in terms of supply that is), so I believe I would need a HMO license. Although I am finding out exactly what needs doing for self-contained flats now to take in to consideration.
Thanks for the reply to both of you, was very helpful.
I have considered bedroom egress when looking in to windows and doors ect.
(Although expect a thread soon asking for advice on the safest and most effective way on cutting through the wooden frame for widening windoes
).
I have also considered how I will provide their own heating. A new boiler will be installed (which obviously in itself has its own regulations) so supply their hot water and heating, but connected to a single mains for the time being.
I will be needed some new drywall for the ceiling however, I will need to also find some way on controlling to level of noise between floors (I believe some acousic drywall, insulation between the floors may help here, any tips

...)
With regards to headroom however, that shouldn't change should it? :S