Really need some help or may have a nervous breakdown

rosiest

HI

I have put our house on the market with a view to selling as their is a house we totally love. Know its a risk but ours in good condition and the one we want needs alot of work so ours will hopefully sell first.

The issue i have found we have is that the house we want is a former police house ( not used anymore ) and it has an office as part of it on the side which is currently marked as commercial. I didnt think it would be a big issue but on calling around every company i called said would not mortgage. The other issue is i have some late payments in 2008 to a catalogue going upto 6 which im challenging but getting nowhere. I'll put down all the details below but can some experts tell me if i can get a mortgage at a decent rate in this situation and point me in the right direction.

earnings are £39645 and £19800. buying price £155000, deposit £31000. late payments are 2008 6 on a catalogue and 4 on a vodafone bill for 2008 also but score is 999 on experian.

Please help its really worrying me

Thrugelmir

Is the property advertised as having commercial premises?

rosiest

This is the description on the particulars - Description
A unique opportunity to purchase the former
Police house
. The property
This iconic village building could benefit
from some general upgrading but offers
excellent potential as a family home.
The property is in two distinct parts. The main
Police house comprises hall, lounge, dining
room, kitchen, bathroom and storage, all on
the ground floor. On the first floor, there are
three spacious bedrooms. At the side of the
main house there is a drive leading to a
garage. The main feature of the exterior is the
superb southern-facing family gardens to the
rear. The second part of the property
comprises the former Police offices with its
own ramp main door access. This section of
the property comprises hall with large storage
cupboard, former Police office, former Police
cell area and a cloakroom. There is perhaps
the potential to develop this part of the
property into a granny flat or annexe, or
similar, subject to the appropriate planning
approval and consents. There is access from
the former office to the former house and this
layout may suit a family buying the main
house and having an elderly relative
staying in the property adjacent.
The property is available with immediate
vacant possession and a viewing is essential

The home report/survey also says - Part of the subjects have until recently has been utilised as the local Police Station. Our valuation assumes that the property is being sold wholly as a residential dwellinghouse and any necessary permissions will require to be
obtained in order to return the Police Station to to residential use.
The property provides acceptable security for mortgage purposes at the valuation quoted.[/SIZE][/SIZE]

ACG

The late payments will have some effect - im guessing they havnt been satisfied going off your first post?

As for the commercial issue, the good news is - if your having this problem so will others.
The bad news is that doesnt really help you other than it should releive some of the pressure.

I would get on the phone to a broker - i dont know any lenders off the top of my head but im fairly new. Atleast with a decent broker they can be calling around their account managers to see what can be done.

If nothing can be done then it either means a cash purchase or the seller will have to have the deeds split.

rosiest

thanks done it now, that was silly

rosiest

ACG wrote: »

The late payments will have some effect - im guessing they havnt been satisfied going off your first post?

As for the commercial issue, the good news is - if your having this problem so will others.
The bad news is that doesnt really help you other than it should releive some of the pressure.

I would get on the phone to a broker - i dont know any lenders off the top of my head but im fairly new. Atleast with a decent broker they can be calling around their account managers to see what can be done.

If nothing can be done then it either means a cash purchase or the seller will have to have the deeds split.

Thanks for replying. The late payments have been satisfied and were both for small amount vodafone was £17 and accounts were closed in 2008.

I agree about it being a positive that its a pain for others and i was also thinking if i can get a fixed for two years then the late payments will have dropped of and the change of use would go through then can get another fixed on fully residential. What does having deeds split mean to a buyer ?

Thrugelmir

Then you won't be able to obtain a residential mortgage on the property. You'll need a commercial loan first. Then apply for change of use.

holly_hobby

This will all depend upon the current official deemed use of the dwelling.

Assuming listed as a semi commercial dwelling (ie part private residence/part commercial use), the split of deeds would have to be done by the current owner, to facilitate your purchase on a residential mge for the private dwelling element.

If you wish to pch and then split, then a semi-commerical mge may be reqd. You could then split the deeds, but the problem you wil have then is 2 sep title deeds and one mge - so you will have to rearrange the finance of both elements accordingly.

To avoid this, the best way to handle would be to have the title deed kept as one, and a change of use - however before you run down the lane with this idea, you need to get some idea from the LA as if a change of use application would be sucessful - as they can and do refuse such applications.

Personally, little too messy for the average buyer - but you may feel its worth it - seek guidance/confirmation from your conveyencer on their suggested solution.

Hope this helps

Holly

rosiest

Thanks i def want to keep as one and change to residential ( its like an extension on the side with a door attaching the two so inside is just another room). Have put in a pre application info request with council yest and they have advised three weeks approx to come back to me.

I love the house and think a good profit could ba made on it long temr but i suppose that doesnt matter if i cant get a mortgage.

Is it as simple as i will not get a residential mortgage on this no matter what ?

I spoke two two brokers one seemed like might be possible, one said no way and would be hard to get a mortgage at all but neither have come back to me yet !

Dave_Ham

Typically Holly has summarised well. I would think in its current state you have absolutely no chance of obtaining a residential mortgage.

Who is actually the owner?

Depending upon this you could approach them to rent for x months and setup an option to buy.

They will struggle to sell this at market value, but if they let you move in and rent (they get an income) whilst the change of use wheels are in motion. Once residential you can approach the bank.

I think there will be a mortgage solution although it will be defined by the skill of the broker.

If you just call up a couple of free brokers, you will get free levels of service as no-one would want to rush to take on this sort of case (nothing against you) just the type of case is just going to be grief..

It sounds like Heartbeat off the TV, with an old station and part residential and part office.

I would also ask the Estate Agent what others people are interested and how they have got on with the finance...?

Good luck

holly_hobby

rosiest wrote: »

Thanks i def want to keep as one and change to residential ( its like an extension on the side with a door attaching the two so inside is just another room). Have put in a pre application info request with council yest and they have advised three weeks approx to come back to me.

I know exactly the set up and I bet it will be lovely when finished ..... and having the "former police cell" can only be a benefit, for when the hubby gets on your nerves or gets a bit lairy ... ... as long as you don't loose the key of course !! ..... (I'm joking ... of course .. ?!? )

rosiest wrote: »

Is it as simple as i will not get a residential mortgage on this no matter what ?

Not no matter what, it all depends on whether it is listed as a semi-comm building (which I suspect it will be).

However, even if not listed as semi-comm, or post change of use, the Police Stn side of this may further somewhat complicate any residential mge/survey (before it is fully converted to resi use that is) i.e there may be a retention until conversion is complete, or other contractual requirements as a condition of the resi finance.

(to explain - full resi conversion is generally reqd in pre-comm prem's, as the lender wans to ensure (as much as poss), that post resi completion the mortgagor doesn't (or can't) reinstate the commercial aspect of the dwelling. Now obviously you couldn't reinstate this it as Police facility, but it could be considered that the previous-comm side, could/would be suitable for some other commercial use/purpose, which is where residential mge uw issues will lay).

rosiest wrote: »

I spoke two two brokers one seemed like might be possible, one said no way and would be hard to get a mortgage at all but neither have come back to me yet !

Essentially, they are unable to give you a definitive answer either way - certainly not until the registration of the property has been determined - which is how this will go all hinges on.

Of course general market experience/knowledge of uw (inc commerical experience) will play a great part in this, a newly qualified adviser, may simply not have had the exposure to be able to answer the query accurately, or the broker even with yrs experience has no commercial experience.

Wait and see what the LA come back with, if the vendor or their agent (not necessarily the EA) don't know themselves.

As already pointed out, I know you love it, and may be nervous of others coming in and snatching it away ... BUT unless they are a cash purchaser they will find exactly the same issues ... so don't rush into anything, and when you start to panic or things don't go to plan, try and remember this saying (which I love and abide by) ....

"Whats for you, won't pass you by".

Let us know what the LA come back with ... and we'll take it form there .

Hope this helps

Hols x