Mortgage to convert two houses into one

red_car

Borrowed 375 on one, looking to borrow 240, plus 150 to convert and then not sure how much once worth, maybe 850.

antrobus

red_car wrote: »

... Regarding numbers, one is worth 470 and other 300. Thanks in advance.

red_car wrote: »

Borrowed 375 on one, looking to borrow 240, plus 150 to convert and then not sure how much once worth, maybe 850.

So you want to spend £150k on turning two properties worth £770k into one property worth £850k? That's the kind of business proposal any lender would be happy to reject without too much thought.

Conrad

Even if you buy one with a normal mortgage, you will still have a major issue later as you are bound by mortgage deeds and terms not to alter the properties without lender consent, and you wont get thier consent because it would be like you wanting to alter the inside of a watch that a pawn broker held as security. There are far too many things that could go wrong - you might go insane and give up halve way through a conversion for example.

Whay you need is specialist devlopment finance from the likes of, off the top of my head (without any research), Ipswich BS or Gaymer Landau.

Even so, you would then need to either repay the mortgage on your current home (the lender wont agree to it being joined to another house), or also get the development finance on the existing property too.
There are all sorts of other issues such as that with building insurance on an empty property (the one next door until conversion takes place).

These sorts of projects can be done, but it takes a very imaginative broker and capable willing client. You should expect many costs and fees, plus a fairly chunky interest rate.

DVardysShadow

red_car wrote: »

Borrowed 375 on one, looking to borrow 240, plus 150 to convert and then not sure how much once worth, maybe 850.

Loans to the extent of 765, not sure if it is worth 850. So 85 of equity - or less

Looks like you are looking for a higher than 90% mortgage - and at 4 times income, you would need a salary of at least 150.

DVardysShadow

MortgageAdviser wrote: »

Id have thought the title deeds would come into play as the lender has to lend against 1 property & 1 set of title deeds. In this case you are asking them to lend on 2 houses with 1 mortgage and 2 sets of title deeds. Have you thought of some short term bridging finance? Can be costly at 0.75% - 1.5% per month but Im not sure how much you are looking at borrowing & how much the end value you would be looking at.

Bridging finance? That is crazy. It does not look like there is any short term finance gap to be bridged here. Just a long term requirement for finance.

As for multiple deeds, there is absolutely no problem with one mortgage on multiple titles. We are in that position and no one batted an eyelid.

Conrad

DVardysShadow wrote: »

As for multiple deeds, there is absolutely no problem with one mortgage on multiple titles. We are in that position and no one batted an eyelid

I often see posts like this where people assume thier situation is very similar to anothers. You will find your is quite different in many ways to the OP's.

DVardysShadow

Conrad wrote: »

I often see posts like this where people assume thier situation is very similar to anothers. You will find your is quite different in many ways to the OP's.

Er no.

The problem is described as multiple title deeds. I have multiple title deeds and no problem. It arises from 2 properties being put together. In terms of how the situation is described, I am making no assumptions. My situation matches the described situation.

So there must be another undescribed aspect of this situation which leads to the problem. Perhaps it would help us if you told me what the difference is between my situation and the OP's. You are allowed to make assumptions provided you state them clearly.

Conrad

DVardysShadow wrote: »

Er no.

The problem is described as multiple title deeds. I have multiple title deeds and no problem. It arises from 2 properties being put together. In terms of how the situation is described, I am making no assumptions. My situation matches the described situation.

So there must be another undescribed aspect of this situation which leads to the problem. Perhaps it would help us if you told me what the difference is between my situation and the OP's. You are allowed to make assumptions provided you state them clearly.

Oh, I've only been doing the job 20 years and run a very profitable specialist broker, but what do I know eh.

DVardysShadow

Conrad wrote: »

Oh, I've only been doing the job 20 years and run a very profitable specialist broker, but what do I know eh.

Just enough to tell me I am wrong, but not enough to say why or shed any light on why the OP has a problem.

So much for the value of doing the job for 20 years and being a very profitable specialist broker. I often see posts like this where people give an opinion based on 20 years experience and being very profitable .....

red_car

Thank you all so much for all these comments. My brain is aching. Yes the problem is as described by several of you - title deeds and security, plus value of properties as separate and as joined, 2 generally seem to be of greater value than one. I am intrigued by the contributor who had no issues with doing similar thing, who was your mortgage with?!. Anyway, the hunt, via several brokers, continues......