Mortgage for house arranged as two flats

larjones

Hi all,
I would like to put an offer in on a property that is currently arranged as two separate flats. The buyers are selling together to attract someone like myself who does not mind converting
back to a family home, which we intend to live in. I thought this would be a straightforward transaction, however, the broker has indicated that they would be unable to provide a mortgage for such a property. ( And this is one of the big high street names.) My question therefore is how difficult is it to secure a mortgage for such a property and, assuming that we can find someone who is prepared to loan us the money, are we likely to be paying a significantly higher interest rate for this? Any advice would be welcome. thanks!

opinions4u

Until the deeds of the two properties have been merged in to one, I doubt there's a mainstream lender who will touch it.

Even then, when the valuer describes the property as being set up like two flats it's fairly likely that the underwriters will assume you're planning to let the place and decline any mortgage.

larjones

Thank you. So assuming that we can get the deeds merged into one, how can we demonstrate that we do want to live there - because we do!

Thrugelmir

Do you have the funds to unconvert the property?

Also 2 seperate properties may be valued higher than a single dwelling. .

larjones

Yes we do have the funds to convert the property back to a single dwelling. Is this going to help, do you think? Should we have plans drawn up to to demonstrate that we really do want to live in it?!

Thrugelmir

Your application will be considered far more seriously if you approach the matter in a business like manner.

Simon_gloster

I wohld imagine if you submitted an application and it was approved via underwriters they would condition the offer that either a simultaneous conversion happened on completion to one title or a specified period after.


That would be the job of your sols and would cost you far more than a bog standard purchase.

Generally lenders would run a mile from this transaction.

Simon_gloster

I wohld imagine if you submitted an application and it was approved via underwriters they would condition the offer that either a simultaneous conversion happened on completion to one title or a specified period after.


That would be the job of your sols and would cost you far more than a bog standard purchase.

Generally lenders would run a mile from this transaction.

larjones

I assume that they would give us the opportunity to perhaps remove say the kitchen upstairs rather than undertake the whole conversion - I am not sure we would have the definitive info about how long it would take to convert it totally.