mortgages

bluebell_43

Hi, I am interested in buying a property with my parents in law,it has two houses on one deed and we would split the purchase price accordingly, they are putting in cash and my husband and I would be part cash part mortgage, they are both over 75 so won't qualify to be put on a mortgage for inclusion on the deeds, and apparently can't put in the money as it would be classed a gift and with this they then can't have any interest in the property,:( which means they couldn't live in the second dwelling. This property is a excellent investment and I really don't want to miss it, its well within my husbands and my mortgage allowance but due to this issue we are stumped does anyone have any suggestions?

Wh05apk

Getting a mortgage with two properties will be difficult, why not split the deeds, your parents could then buy theirs for cash, and you could buy yours with a mortgage.

bluebell_43

Thanks so much for that, it looks like the owners of the original property built a three bedroom cottage in the grounds this has no separate access, I've never heard of splitting the deeds, with the little information I have given do you think that this could be an option?:j

ACG

Could your in laws not buy the whole property then sell you the bit your after - that would be the easiest as yo dont need to get a lender involved until the time you are actually bbuying it (ie they dont need to be included in any deeds or valations etc).

Alternatively if your husbands income supports the whole property, then get your name and his on a mortgage and then you will have to get in contact with the lender to split the land, they will want to do a valuation and may want you to make an additional payment once the land is split in order to stay within their LTV - lenders charge a fee if you are overpaying the mortgage so if you are obtaining a mortgage you either need to see if they will allow for this without charging you a fee OR find one that charges the lowest overpayment fees or none at all ir their are any possibly an offset account maybe?

bluebell_43

Thanks for that, but the in laws only will have enough for their section of the property unfortunately, and we will have to buy the other residence on both our incomes, does this still sound feasible? A separate access for the in laws residence may be possible if splitting the deeds would require this. Also you wouldn't happen to know if splitting the deeds was and expensive procedure?
Thanks so much for all your help it has made this seem that it may be possible.

Yorkie1

If the properties are split into two, you need to think carefully long-term about the access for the second property, so it is enshrined legally in both properties' electronic deeds. i.e. right of access for P2 over land in P1, details as to who maintains the access land, at whose cost, what to do if it's not properly maintained etc. Difficult to tell whether it might make re-sale of either property more difficult subsequently.

If you're considering putting a new access to the public highway in, bear in mind that in some situations this can be very very drawn-out and not cheap. You'll be dealing with the highways section of the council, which will have certain regulations it will apply depending on the nature of the road you're accessing. It will probably also require planning permission.

bluebell_43

Thanks thats something to consider, luckily the highways shouldn't be too much of a problem but it is always handy to have every avenue covered. And the boundary consideration and upkeep is also important, at last this could be a possibility. Thank you to everyone that has made suggestions it has been extremely helpful. If anyone can think of anything else for me to consider I would be grateful, wishing everyone on MSE a very happy new year.

trillion

Reading about two houses sharing an access and title deeds brings out the Town Planner in me.

You need to check if there are any restrictive covenants or planning conditions on this property.

It may well be that (for example) one house is legally classed as an annexe to the other and if that was a condition of the original Planning Permission, you might have trouble splitting the property into two individual plots.

If you haven't got as far as getting your solicitor to do a search (it would hopefully turn up there) a phone call to the local Planning Department would clear this up.