Mortgage to buy next door

jo51e222

We are looking to increase the size of our house and we have been offered the opportunity to purchase next door.

We have a mortgage on our current property and will need further mortgage funding to purchase the adjoining property. Having spoken to our current mortgage provider today they have confirmed that they are not able to provide us with a mortgage because they cannot provide one mortgage for two individual properties which have separate title deeds. Furthermore, they confirmed that they can not provide us with two residential mortgages on adjoining properties (they could however provide if one property was in London and required for work whilst the other was a family home in the country as an example!)

Please can anyone advise of how the mortgage structure could work for such a situation or whether there is a preferred bank for providing a mortgage in this situation.

dimbo61

Buying the house next door and knocking 2 properties into one could actually devalue the whole project and main lenders will not touch this at all.
Say all the houses on your road are worth £100K do you think knocking two houses together will make it worth £200K

holly_hobby

The only real chance of doing this would be to pch next door for cash (as you won't get any lender(even your current due to exposure) to lend on this project due to the purpose of the loan, and the suriety issues re any possession order pre completion, and the title issues for 2 sep lenders.

The residential conversion (from 2 to 1 single dwelling) means for mortgage purposes, that there can only be one main point of entry entry, one kitchen, one encompassing boundary, etc), and also requires your current lenders permission, to conduct the conversion (which is doubful), as it involves compromising their security (on your current home) during the work period, such as the period between removing the party wall and completing what will be a significant refurb to merge the 2 units into 1 (with a new title deed reqd for the new singular unit), and thats assuming planning permission is actually granted.

This kind of project and initial pch of dwellings, is generally fully self funded by developers or individuals, whom then re-sell on as one mortgageable unit once the above points and single title deed has been obtained, or may choose to release their invested capital/expenses etc, via a remortgage once the conversion is complete with the property having recognised singular dwelling status and title deed.

Its a nice idea, but there are major hurdles to its success - which may make it a mountain too high to scale at this time.

Hope this helps

Holly

amnblog

What are the chances of you obtaining planning permission to convert to one home?

If you get that there are lending options out there but not in the mainstream market.