How to get a mortgage on this - your creative minds required please

cem

Hello all, I have had a look around the forum but could not find any past posts on this.

Your opinions/advice/guidance would be appreciated. Summary as follows:

-Buy to let mortgage required
- Property value= 174k rent = 1250 pcm LTV required = 85%
- 3 bed massionate annex above commercial grocery store
- 80 yr lease (+/- 2yrs)
- Rear entrance with steel staircase
- Property does have two kitchens as it has been split into a 1bed flat unit downstairs and a 2 bed flat upstairs
- Shops next to the grocery store below are a bank and grocery store. Closest restaurants are the 4th and 5th shop on each side.


So:

*Would a Lender lend on this if 1 kitchen is removed & property is made to look like 1 unit ?

*Any other creative way to make a lender lend on this? (apprently steel stairscasing is a big no! :-s) ?

*Can you share any experiences if you have every done a similar deal?

Thank you

Toughluck

Very very complicated.

Who is your current lender? 2 kitchens can cause problems if the 2nd kitchen is not for an immediate family member (gran etc).

Does both flats have seperate title numbers? I would imagine you would need a semi-commercial mortgage. If your credit is very very clean some lender may look at this.

If you are with a sub prime lender because of the make up of the property and adverse credit I think you'll struggle at that LTV.

Conrad

There is a likely lender for this but there will be questions to deal with which in a nut shell all surround lender security;

Is the legal title sound and suitable?
Are there access issues - for example could the flat owner adjoining the staircase fall out with the other occupier and make access difficult?

Are there access issues with regards the shop, for example the shop owner falls out with a flat occupant so disbars physical access?

Can the shop become a takeaway?

As I say possible as long as lender has a clear unimpeded exit route in the event of repossession

cem

Thanks for your replies guys.

So at the moment I dont have a current lender, I am trying to sort out a mortgage for this deal as I want to buy it (sorry should have made that clear)

To answer your questions:

Does both flats have seperate title numbers?
No

Are there access issues - for example could the flat owner adjoining the staircase fall out with the other occupier and make access difficult?
No - not with the current layout.

Are there access issues with regards the shop, for example the shop owner falls out with a flat occupant so disbars physical access?
No, completely different accesses. They cannot impact each other in terms of access.


It is not a problem to get one kitchen taken out for valuation purpose but what I am concerned about is not having a mortgage approved after 1 kitchen is removed and the whole place is made to look like one property rented out on room basis.

So to summarise, we have the same deal as my orginal post but say with one kitchen..how likely can we get something on this ?

Many thanks

Qual123

i think you have a choise of 3, BM, C&G or mortgage express. Im sure others will let me know if im wrong but i looks like it fits with any of these.

cem

Thanks for your reply. I'll try get intouch with them today so see what they say.

Meanwhile I wonder if a commercial mortgage would be possible on this? I have not previously ever bought a commercial mort. so any mortgage broker input would be most appreciated.

cem

c'mon guys - Would be great to get some input around commercial mortgages for this ?