Joint mortgage to buy house and split into flats

mjseeley

Hi all,

Hopefully this is posted in the correct place - have been a MSE member for a while but never posted before!

Basically i'm looking at going into a joint mortgage with friends. We're looking at getting a house, and converting it into two flats, then splitting the mortgage so we each own one of the flats. We're making progress with what's required to do the work on the house, the complication is how we go about doing the mortgage.

We'll each be putting in half. They should have no problem getting the money, based on both salaries and a cottage they own outright. I shouldn't have too much trouble either, as i would be able to put in about 1/3 as cash, and 2/3 as a mortgage based around 4x my salary. This is all assuming separate mortgages.

Now, i'm assuming things work differently with a joint mortgage - so really i'm wondering if i'll be offered a similar amount of money as a joint mortgage as i would be if i was taking one out on my own, and basically how this would work. Any tips would be most appreciated!

Thanks,
Mark

JoeK_3

Unless I have miss-read your post, this sounds like two seperate buy to let mortgages.

Whether lenders will allow this or not is subject to how the division of the two flats have been done.

They will require proof of planning permission of course and the mortgages will be based on the assessed rental incomes.

JoeK

mjseeley

Hi Joe,

Thanks for the response. The friends i'm going in with are going to be looking at a buy to let mortgage, as they'll be renting it to their daughter. I'll be intending to live in the other flat. When the mortgage is taken out, it will still be one property - is it possible to take out two completely separate mortgages to collectively buy one property, or does it have to be a joint mortgage?

Regards,
Mark

JoeK_3

mjseeley wrote: »

Hi Joe,

Thanks for the response. The friends i'm going in with are going to be looking at a buy to let mortgage, as they'll be renting it to their daughter. I'll be intending to live in the other flat. When the mortgage is taken out, it will still be one property - is it possible to take out two completely separate mortgages to collectively buy one property, or does it have to be a joint mortgage?

Regards,
Mark

One joint mortgage initially, two seperate mortgages aftewards.

JoeK