agreement in principle...

Grimbo82

Hi I am a newbie on here looking for advice, please can anyone help?

We have quite a tricky situation so here goes:

• I own flat and am currently going through legal process of staircasing to 100% and then plan to get CTL from Halifax, not sure how long this will take.
• My wife will be remortagaing from a residential to a BTL
• we then plan to buy a house £155k will have 10% deposit.

We both have good salaries (combined income £70,000) and mortgage advisor has told us remortgage, CTL and own mortgage should be no problem. We have seen house we like but would like to know:

Can we get an AIP now from a lender that assumes the BTL and CTL will take place?
If not is it advisable to put an offer in on a house without an AIP?

We expect starcasing to take 4-6 weeks but don't want to risk losing a house we like. Any advice much apprecited.

kingstreet

Will the housing association give you permission to sub-let?

They normally refuse.

GMS

How are you funding the staircasing? If with a mortgage it is unlikely they would grant CTL straight away.

Grimbo82

Hi guys,

Other shared ownership party is house builder not a housing association. My solicitor has checked the lease and says i can let the property once i own 100%. I am paying for staricasing in cash and not borrowing any money.

kingstreet

Ok. So mortgage-wise, you want 90% with two let properties/mortgages in the background?

Grimbo82

That's correct. Thr house builder is not interested in purchasing or nominating the flat to another purchaser so they are happy for me to buy out my remaining shares which i have cash for. My lender, the same name as a west yorkshire town has said that when staircasing is complete they would be happy to give consent to let. We don't know whether we could get AIP or not and are unsure whether to put an offer in before getting an AIP.

kingstreet

I don't know of a lender which will ignore two let properties with mortgages. Saying which, if you don't handle such cases regularly, you can get out of touch quite quickly. Have you got enough income to justify affordability of all three mortgages assuming both let properties were untenanted?

One of the others might have an idea. This is probably a job for a good independent or whole market broker.

At 90% this is going to require some work and I'd counsel against an offer until you're sure of being able to fund the purchase.

Grimbo82

Thanks kingstreet.

I'll bear that in mind, think that is the idea i had in imnd anyway about putting an offer. We are dealing with an advisor now who doesn't seem to think it should be a problem as we have good affordability, even with properties untennanted, so we will see what happens.

Thanks,

grimbo82