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Advice needed on timing for mortgage company
pollyzanna
Posts: 75 Forumite
Apologies for the saga but we are in a bit of a quandry and if anyone can make suggestions or has "been there, done that" maybe they can help. :think:
We're buying two semis in one building with the idea of reverting them back to one property, doing a complete renovation and also extending. "One" is derelict at present and "Two" is tired but lived in.
We can get a mortgage on "Two", great.
We can buy "One" as a cash purchase with equity from current house (it would be classed un-mortgageable because in a bit of a state)
OK so far.
At some point, we will convert into a single property and change the title accordingly. This is easy in theory, but timing is everything!
When this happens (change of title) we have been advised the mortgage company could retract their loan - because part of the property would be unfinished - and we would need to re-negotiate?
We also want/need to extend. The planning dept are not clear in their stance - different people say different things about what we need to do when . However, we think that it will certainly be easier to get planning if it is just one combined property.
Looking at re-mortgaging under just one property: we would struggle to get "One" (implies separate properties) up to an acceptable standard for mortgage purposes before the extension is built. This is because the extension will house the boiler. From that point of view it would be easier to get planning before we "combine" the two into one property! We have no idea how long it will take to get planning permission ('cos they might want alterations etc)
It all seems a bit of a vicious circle with no way in - or out! :doh:- any suggestions?
We're buying two semis in one building with the idea of reverting them back to one property, doing a complete renovation and also extending. "One" is derelict at present and "Two" is tired but lived in.
We can get a mortgage on "Two", great.
We can buy "One" as a cash purchase with equity from current house (it would be classed un-mortgageable because in a bit of a state)
OK so far.
At some point, we will convert into a single property and change the title accordingly. This is easy in theory, but timing is everything!
When this happens (change of title) we have been advised the mortgage company could retract their loan - because part of the property would be unfinished - and we would need to re-negotiate?
We also want/need to extend. The planning dept are not clear in their stance - different people say different things about what we need to do when . However, we think that it will certainly be easier to get planning if it is just one combined property.
Looking at re-mortgaging under just one property: we would struggle to get "One" (implies separate properties) up to an acceptable standard for mortgage purposes before the extension is built. This is because the extension will house the boiler. From that point of view it would be easier to get planning before we "combine" the two into one property! We have no idea how long it will take to get planning permission ('cos they might want alterations etc)
It all seems a bit of a vicious circle with no way in - or out! :doh:- any suggestions?
Growing old is inevitable, growing up is optional :j
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