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Odd situation combining two flats into one.
fathippy
Posts: 49 Forumite
Is it possible for two people to sell a combined property in one transaction only?
To clarify the situation there are two flats with separate owners which are worth under £200k each, however to combine into a house will be well over £400k and not a hard job. Planning permission has been acquired and the work done, however the advice has been for one of us to sell a flat to the other person, who then sells to the new buyer.
Not only does this have a little more "trust" invovled, but also will have two transactions and hence two lots of stamp tax. Surely it is possible for the buyer to purchase a new property from the two sellers evenly in one transaction.
Any thoughts?
To clarify the situation there are two flats with separate owners which are worth under £200k each, however to combine into a house will be well over £400k and not a hard job. Planning permission has been acquired and the work done, however the advice has been for one of us to sell a flat to the other person, who then sells to the new buyer.
Not only does this have a little more "trust" invovled, but also will have two transactions and hence two lots of stamp tax. Surely it is possible for the buyer to purchase a new property from the two sellers evenly in one transaction.
Any thoughts?
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Comments
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It is a trust issue. The buyer is only interested in buying the 2 properties or none at all.... the advice has been for one of us to sell a flat to the other person, who then sells to the new buyer.
... Any thoughts?
Basically this can be resolved at exchange of contracts by doing as advised. It is just mechanics in the arrangement of the chain to meet the buyers requirement to buy both or neither.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
If either of the original parties that own the property have mortgages then they're going to need to check up with the lender(s) that they are happy with this - quite often they aren't as frequently 2 properties cost more than 20
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The buyer is buying a house so I agree his position is fixed. The question is more about the "waste" of stamp duty.
If there are two transactions A to B for £200k costs 2k and then B to C for £450k costs 13.5k.
If C buys from (A and
he pays the same stamp tax, however A & B dont waste the 2k.
In the best case scenario C buys from A at £225k and B at £225k paying only 4.5k (saving 9k) , although I dont know whether this is feasible if the work has already been done??0 -
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I doubt they will have a problem. The issue here is basically trust that the deal will go ahead and stamp duty.poppysarah wrote: »What do both the mortgage companys say about it?Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
DVardysShadow wrote: »I doubt they will have a problem. The issue here is basically trust that the deal will go ahead and stamp duty.
When two propertys (if they each have a mortgage) become one - then the mortgage companies will need to already know - you can't have two mortgages on one property.0 -
I am assuming that there will be one mortgage on a combined property.poppysarah wrote: »When two propertys (if they each have a mortgage) become one - then the mortgage companies will need to already know - you can't have two mortgages on one property.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
I agree that the mortgage company probably dont mind if they are paid their monthly fees on time and all the redemption monies on completion. However in this case one flat is mortgaged and the other not.0
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They can only cry over spilt milk at this stage. If it is sold and they get their money back, that is the end of it.poppysarah wrote: »When two propertys (if they each have a mortgage) become one - then the mortgage companies will need to already know - you can't have two mortgages on one property.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
I agree that the mortgage company probably dont mind if they are paid their monthly fees on time and all the redemption monies on completion. However in this case one flat is mortgaged and the other not.
I'm pretty certain they will mind. And you've probably breached the contract by altering the property without discussing it with them.0
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