almost mortgage free BUT!!!!

hackneyhouse

posted a thread here before but for some reason noone replied.

I'll try to make simpler.

I have a freehold house and am converting to flats. I live here. I have a mortgage of 230k and house worth 480k. Worth significantly more as 2 flats.

I have planning permission to do this.

Existing mortgage tied in 2 years. Need to tell them my plans. Sale of one flat will pay off my mortgage alone. That is the plan or to keep a small portion of mortgage.

Plan is to remain living in one of the flats, although I could sell both.

Problem 1: Existing mortgage. Will they let me and if not what can I do to get around this as sale of flat is intended to pay off mortgage?

Problem 2: Someone has said I'd be subject to income tax on this? Really? My accountant says not as I am already living and will remain in property. What about tax issues?

Thanks for your replies!!

Heather:o

hackneyhouse

I should add the idea of a bridging loan seems way out....what can I do with my existing mortgage lender? I'm about to read contract but sure its standard:)

SmlSave

Hi Heather, I think you might get more replies on the Mortgages & Endowment Board.

I don't see why the mortgage comp won't let you turn it into flats, best to give them a call and see what they say