Flat conversion leases and buy to let

sparky67_2

Hi,

I recently converted my house into two flats. I now have 2 buy to let mortgages ready to go but have to grant 2 leases. My solicitor needs permission from my existing mortgage company to do this though.

Anyone had any experience with doing this? Are they (HSBC) likely to say yes. I have about 68% LTV now that the conversion is complete.

I've written to the legal department a month or so back but if they say no I'll be left with no option but a very expensive bridging loan! (I've been qouted about £3500 - £5000:eek: )

Thanks in advance.

EdInvestor

sparky67 wrote: »

Hi,

I recently converted my house into two flats. I now have 2 buy to let mortgages ready to go but have to grant 2 leases. My solicitor needs permission from my existing mortgage company to do this though.Anyone had any experience with doing this? Are they (HSBC) likely to say yes. I have about 68% LTV now that the conversion is complete.

Don't you think you should have checked this out before doing the conversion?

I've written to the legal department a month or so back but if they say no I'll be left with no option but a very expensive bridging loan! (I've been qouted about £3500 - £5000:eek: )

Not surprisingly. Did you bother with planning permission, building regs etc? Or are you one of those "Just Do It" people? :rolleyes:

sparky67_2

Do you think I'd have all the mortgages ready to go if the planning and building regs hadn't been sorted? No surveyor would say a new conversion was mortgageable without checking these things first.

In fact the mortgage advisor originally told us that the bank wouldn't have a problem with splitting the deeds to sell/remortgage. It was only 12 months later when I asked my solicitor to draw up the leases that I discovered it might not be so straight forward.

hackneyhouse

Hello,

I'm tied in for 2 years into existing 230k mortgage on a house valued at 500k.

I am getting planning permission to make into two flats to sell flat 1 and live in flat 2. Flat 1 worth 280k on sale and flat 2 worth 350k.

Therefore I pay off my mortgage. I have a loan from my parents for the conversion.

Problem is I've found out I should tell my mortgage company. Will they say no? Presumably on making a lease the mortgage company finds out anyway. I won't have the capital to pay off existing loan till sale and also very wary of idea of bridging loan.

Worried if I go ahead and build then the mortgage company might cause me problems. Is there any negotiation I can do? When I speak to my conveyancing solicitor what should he do? He suggested writing to my company but I'm worried it'll write off my plans completely.

The whole idea is on sale of the flat I'll pay off mortgage anyway and already face a big redemption penalty anyway. They will make 10k from me.

What do I do? Its difficult getting new mortgage product as I'm self employed and this was originally a self cert mortgage.

Please help.

Thanks!

Helen

Vincenzo

sparky67 wrote: »

Hi,

I recently converted my house into two flats. I now have 2 buy to let mortgages ready to go but have to grant 2 leases. My solicitor needs permission from my existing mortgage company to do this though.

Anyone had any experience with doing this? Are they (HSBC) likely to say yes. I have about 68% LTV now that the conversion is complete.

I've written to the legal department a month or so back but if they say no I'll be left with no option but a very expensive bridging loan! (I've been qouted about £3500 - £5000:eek: )

Thanks in advance.

Why does your solicitor need permission from your current lender if you are re-mortgaging? Can the new leases not be put in place at the same time as the remortgage goes through?