Which mortgage lender would entertain this?

[RockyBalboa]

Am interested in a place which is a large detached property. It is joined together but is split into two:

Number 1 has two flats (one up, one down).
Number 2 is a house.

Both for sale and accepting offers for both together; offer I have given is for both but I suspect will have to be sold as Number and Number 2 with the total offer split 50/50 across both.

Help please?!

[DirtyDog]

If they are registered with the land registry as two separate properties, then the offer would need to be split over the two - which might work well for stamp duty, depending on how much each one is worth.

[RockyBalboa]

If they are registered with the land registry as two separate properties, then the offer would need to be split over the two - which might work well for stamp duty, depending on how much each one is worth.

Yep, they are down seperately with the Land Reg.

[northernladuk]

If they are registered with the land registry as two separate properties, then the offer would need to be split over the two - which might work well for stamp duty, depending on how much each one is worth.

There maybe some savings on searches etc here but legally the documentation would be have to be progressed for each as separate entities just as DD says. I am assuming you will be using a mortgage and this would also be treated separately if you are getting a residential one. Residential mortgages I believe will not allow you to buy both. You are not residing in one of the houses so won't meet their lending criteria. Getting a BTL or commercial mortgage could be different but I would expect, as DD says, if they are registered individually on Land Registry and deeds/leases etc the mortgage will have to follow suit.

A commercial mortgage might be different but expensive.

What exactly is the issue of you splitting the costs and just buying two houses? Doing that means you could have the option to offload one and not the other if need be in the future.

I would take some advice from a financial advisor first. I had a pretty complex mortgage situation recently and had to use an IFA to sort out. I used John at Freelancer Financials and after a bit of investigation they helped me to resolution so would say giving them a call wouldn't be a bad idea.

[RockyBalboa]

There maybe some savings on searches etc here but legally the documentation would be have to be progressed for each as separate entities just as DD says. I am assuming you will be using a mortgage and this would also be treated separately if you are getting a residential one. Residential mortgages I believe will not allow you to buy both. You are not residing in one of the houses so won't meet their lending criteria. Getting a BTL or commercial mortgage could be different but I would expect, as DD says, if they are registered individually on Land Registry and deeds/leases etc the mortgage will have to follow suit.

A commercial mortgage might be different but expensive.

What exactly is the issue of you splitting the costs and just buying two houses? Doing that means you could have the option to offload one and not the other if need be in the future.

I would take some advice from a financial advisor first. I had a pretty complex mortgage situation recently and had to use an IFA to sort out. I used John at Freelancer Financials and after a bit of investigation they helped me to resolution so would say giving them a call wouldn't be a bad idea.

There's no issue of splitting costs - I just naively thought that as the offer is for both, I could purchase both together. But it looks like I might need two mortgages.

[Power Mortgages Ltd]

There's no issue of splitting costs - I just naively thought that as the offer is for both, I could purchase both together. But it looks like I might need two mortgages.

Hi RockyBalboa,

You will need two mortgages, yes. If the properties are registered with their own titles then this would be no different to buying a property in separate roads.

The difficulty you will face (unless I have read it wrong) is finding a lender who will lend on adjoining properties.

I am not sure if I have understood right but from your explanation it sounds like the property is similar to a semi detached property with one of the properties being split into a one up, one down and the other remaining as a house. Is this correct?

If this is the case, then a lender would have concerns with you potentially buying both, taking a big hammer and bashing through the middle to create one large residence. This would obviously impact the value of the property and also cause issues if something happened part way through the conversion and the lenders were left with a property which is neither 2 separate dwellings or 1 dwelling.

I guess it depends on your intentions for the two separate properties. Are you looking at this as purely an investment and intend to let out each 'unit' separately (eg the 2 flats and the house)? There are some lenders who could consider lending against the freehold of the property with 2 flats because if they are separate flats but only on one deed then this will cause issues for most lenders who would see it as a type of house of multiple occupancy but you would still need two mortgages, one for the property with two flats and one for the property next door.

Hope that helps? (assuming I have understood the situation right!)

[RockyBalboa]

Hi RockyBalboa,

You will need two mortgages, yes. If the properties are registered with their own titles then this would be no different to buying a property in separate roads.

The difficulty you will face (unless I have read it wrong) is finding a lender who will lend on adjoining properties.

I am not sure if I have understood right but from your explanation it sounds like the property is similar to a semi detached property with one of the properties being split into a one up, one down and the other remaining as a house. Is this correct?

Hi,

It is one large detached building but split by number; with number 1 being split into two flats (one up and one down) and the number 2 a house.

My intention would be rent number 1 and live in number 2.

[northernladuk]

I would be tempted to get the flats checked as well. If it's not been done properly to the regs and not signed off it can be a nightmare. It's bad enough with loft conversions not being done properly. Even if it has been converted for a long time I would pay extra attention to that aspect. I am sure your solicitor will be pointing that out and more though.

[Power Mortgages Ltd]

Hi,

It is one large detached building but split by number; with number 1 being split into two flats (one up and one down) and the number 2 a house.

My intention would be rent number 1 and live in number 2.

I think if one of the titles has been divided into two separate dwellings it will be a little more tricky to secure funding against it and you may have to go down the commercial mortgage route or see if there is a lender who would consider looking at a house of multiple occupancy (HMO) for that property. The other mortgage for the property you would reside in shouldn't be too much of an issue so long as the lender doesn't have any concerns regarding the fact that you would own the property adjoining it.

Are you able to prove sufficient income in the conventional way 2-3 years of Limited Company accounts with salary and dividends being sufficient to cover what you need to borrow? If not, your choice of lenders will be restricted to those who can assess your income via a multiple of your contract rate.

[Freelancer Financials]

You have three dwellings in one building: two flats in number 1 and a residential house in number 2. This is not a straight forward transaction at all.

Number 1 (The two flats):

Firstly, you need to check that the two flats are self-contained flats, with separate titles/leases with building regulation approval? If the answer is yes to the above, you should be able to apply for a BTL or commercial mortgage for each flat. However, if it's a single title which has been converted into two makeshift flats? you will have problems getting a conventional mortgage.

Number 2 (House to move into)

As long as the description you have provided is correct, you should be able to apply for a residential mortgage. Just to be on the safe side get the broker to check with the lender and it's surveyors that the property is suitable for lending purposes. You don't want to pay a valuation fee, only to be told that the property is not suitable for residential lending.

I also believe you should take on board what Ben from Power Mortgages has said and Northernladuk.