Mortgage for a House Conversion?

Col.Mastard

I want to convert a 4 bed mid-terrace house, into 2 self contained flats.
How do Mortgage lenders view this kind of proposal?

Any advice would be gratefully received

wardlaw

High street mortgage lenders would not look at this

Its more of a commercial mortgage residential mortgaes/lenders are used to purchase your main residence re-mortgage and BTL etc

Mr_helpful

Rather depends. There are lenders who will mortgage 1 house split into flats for BTL purposes but not really to raise money for the work to be done. This would be commercial.
Are you going to split the title when the work is done?

jamesd

I've contemplated this, going for two leasehold flats as the final result, retaining the freehold and living in one of the two flats. Any suggestions for making the process as trouble-free as possible would be welcome, so I can better assess whether it's actually worth doing.

toonfish

it's definitely a commercial deal, although I know of 1 client who has twice done this when buying with a residential mortgage without informing the lender and just remortgaged and split the titles once work was complete. Obviously the lender would be up in arm sif they found out.

The local planners will tell you if it is viable, and round here their main concerns are access and parking

Col.Mastard

toonfish wrote: »

it's definitely a commercial deal, although I know of 1 client who has twice done this when buying with a residential mortgage without informing the lender and just remortgaged and split the titles once work was complete. Obviously the lender would be up in arm sif they found out.

The local planners will tell you if it is viable, and round here their main concerns are access and parking

But if you ask for their consent, once the mortgage is taken out, are they likely to grant it?

toonfish

Col.Mastard wrote: »

But if you ask for their consent, once the mortgage is taken out, are they likely to grant it?

no, but if you buy it as a single unit, convert it and then remortgage it is unlikely they would ever know. You need the solicitor to split the titles at the same time as doing the remortgage, and obviously find an initial deal with no redemption penalties.