Combining mortgage and properties help

freddiedogbot

Hi All,

I am looking for some advice on buying 2no seperate houses that used to be 1 house with one mortgage. We are currently renting 2 thirds of the house and the other 3rd is in the process of being put on the market. The other 3rd property is currently in a state of disrepair and we are looking to purchse this propoerty and the one we are currently renting and return them both back to the one house as it was originally.

I am therefore looking to remortgage my current house to enable us to put 2no deposits down on both properties etc. I am looking for a reliable mortgage broker in the North Wales area who could assist me with what it seems is rather a complicated activity.

If anybody could give me any advice on any of the elements above I would be very greatfull

Thanks in advance. :eek:

Conrad

freddie, you need to make things a bit clearer;

You say you are renting but then you say you can remortgage your current house? Is there another house somewhere then and if so whats the value, what do you owe, have you let it out, and if yes for what rent per month?

Conrad

Next issue is that if you buy both properties, each with it's own mortgage, those lenders will never allow you to join the houses and deeds because too many things could go wrong.

The only thing I could think of, without knowing all the details, is to use a small speacialist lender for short term 'developers' finance, but the rates will be super high. For example something like £180 per month for £10,000 borrowed. They could allow you to then remodel the property and then you could potentially remortgage to a 'normal' lender after 6 months.

freddiedogbot

Conrad,

To clarify I currently have a property which I rent out. I am also renting and living in a property which is the 2/3rds of an old house. The house attached to the propertery I am renting and living is due to come onto the market soon and this is the one that is 1/3rd and in disrepair. The property I am renting/living in has an aprrox value of £200k, the 1/3rd propery value is approx £50 to £70k. I am looking to to take £40k from the propery i am renting out. My thoughts were to buy the pair and then combine the 2 back into the 1no original house. This would give a combined property of a 5 bed house with, kitchen, dinning room, 2no living rooms and study which on a rough review of current market values in the area the combined value of the 2no back into 1no could be £400k. From what you are saying this may well be not possible. Could you advise of any mortgage brokers in north wales wrexham/chester area I coulkd possibly sit and discuss this with?

Cheers,

Mark.

maninthestreet

I suspect you will only be able to combine the two houses once you have paid off the mortgages on each, and actually own them out right.

Thrugelmir

Why not sell your current property. Use the released equity to purchase the smaller property for cash and renovate it.

Meanwhile obtaining a mortgage for the current rental property. With the majority of the work down readjoining the properties into one will be an easier task from a lenders perspective.

Conrad

What Thruglemire suggests is a reasonable option to try. Beware of pitfalls though such as the lender not allowing a 'buy to let' next door. It may be easier once you buy that one for cash (if your funds allow a cash purchase of it), not to let it out. Lenders often dislike a next door let property owned by thier mortgage applicant.

Can't think of a broker in your area, to be frank though, these days you can deal over phone, although I wouldn;t recommend a call centre type broker as this case type won't have appeared in thier training seminars!!

holly_hobby

In essence you want to buy 2 properties next door to each other, which have 2 sep title deeds and are 2 sep units (although they were originally one single dwelling).

Next door is in a state of disrepair (so doubtful depending upon the severity if its mortgageable, or if any mge offer won't have significant retentions in place).

Your aim is to refurb next door, and then rever the 2 units, back to 1 family dwelling.

The only way to do this IMHO (assuming you obtain a pch and mge for the property you currently rent), would be to pch next door for cash, complete the refurb. Once completed you then remge your own home, whilst at the same time merging the title deeds from 2 to 1 - ending up with 1 family dwelling and 1 residential mge.

Obv this will all be down to how you fund the pch and develpment of prop no 2, but as already stated even if this is in a mortgageable state, you may well find resistance given your plans, and the perceived effect on surity whilst the development is under going, and the issues re the title deeds (TD) and subsequent re-structure of finance.

I think cash pch and subsequent TD merge and remge to be the way forward on this.

Hope this helps .. .good luck

Holly

freddiedogbot

All,

Thanks for your comments and advice I will take these onboard and see how we go.

Many thanks.

Mark.