Getting a mortgage without title?

conks

Hi

Hopefully I'll explain this as best as I can.

My In-Laws have a barn.

They've offered this to us to convert.

We have £60k to invest oursleves, the conversion is estimated to cost c£185k in total so on this basis we're looking to borrow say £125k.

I'm not sure how this works. Do we need to find a stage payment lender for the build/conversaion process?

If we don't own the barn outright and have no title/claim to it will we be able to secure a mortage against it?

The In-Laws will provide the barn to us free of charge.

Thanks.

ACG

Can you not get the deeds done before you transfer it to your name?

I dont think a mortgage will be possible before - unless its in your paretns name.

GMS

How much is the barn worth as it stands?

Have you checked as to how access arrangements, drainage/septic tank etc will be set up?

Need to ensure that all arrangements are in place and acceptable to any proposed lender before starting.

holly_hobby

Assuming planning permission has been sought and agreed with the local authority .. which may not be achieved, so sound this out before you start down the following path, which is .....

The barn to be mortgageable under its own right, will have to have its own title deed (so it'll need to be split from the main house if its attached to a farm unit etc), separate private and right of access (ie not through the boundaries of land under the main house or any other private dwelling), and have its own separate utility services (ie not spared off the main house or any other dwelling).

The property will have to be purchased in your name, for you to have a mortgage.

There won't be any stamp duty (SDLT) for you if there is no consideration (either money or goods/services) in exchange for the property.

However, they may be exposed to CGT on the diff between acquistion price and market value - less reliefs (unless the property attracts CGT relief under "business use" which this would come under farm buildings, if part of and utilised as an asset of a functioning farm.

There are development providers, if you are in a position to proceed having satisfied the above, try Buildstore as a starting point - http://www.buildstore.co.uk/.

Hope this helps

Holly