Halifax Mortgage problems due to house divided into flats

opinions4u

Did you tell the broker the property was divided this way?

If so, I'd suggest asking for a refund of all fees incurred so far. There's no way this should have got to valuation without exploring suitability first.

milly_molly_mandy

Hi opinions4u
I am not sure if we did tell him. I had no idea it was a problem.
Nobody mentioned it...as far as we were concerned it was just a
door to the stairs that would need removing and an ensuite instead of where the kitchen is. I didn't even notice that the utilities were divided.


I know a lot more now though!

pinkteapot

I've heard of the "two kitchen" issue with mortgages before (only due to a friend encountering the same thing). In OP's defence our broker never asked us if the property we're buying was divided up. Is it on brokers' lists of standard initial questions or do they expect you to inform them?

milly_molly_mandy

I was just wondering if a bridging loan would be a solution for us for this situation? We only need to borrow 25pc i.e 100k of the value but I am concerned that we can only re-mortgage after we have owned the property for 6 months. Any ideas?

holly_hobby

To be fair Milly, the broker couldn't be expected to know if the property was divided pre-survey (if not disclosed), unless they were connected to the selling agt or they had the foresight to ask some basic qs.

Experience always made me question at app stage, if the unit was a standard single dwelling (house), of standard construction (ie brick and tile) - but its not a regulatory requirement.

Yes - generallly 6 mths ownership before any remortgage, but again this isn't a regulatory requirement, and some lenders may be more flexible.

Bridge loan - not ideal given its high payrate and costs, with any delay/issues (inc status at the time) preventing a move onto a residential rates (via a remortgage), and then really putting the cat among the pidgeons !

Conversion/renovation mge (given you say it needs a complete refurb), may be more appropriate for several reasons - you could sound it out with buildstore ... http://www.buildstore.co.uk/ ....

Hope this helps

H x

milly_molly_mandy

thanks again for everyone taking the time and effort to give me advice. I will start again tomorrow and now I know a bit more than I did on Friday!:)