Buying flats to convert to a house

delilah12345

we are trying to buy a house which has unofficially been turned into two flats and have just been knocked back by santander's underwriters which has left me a bit lost
We have passed the affordability easily and 60% of the equity in the property would be ours , we have been with Santander for over 10 years and never had any issues
the house is listed as two flats but there is only one land registry title listed - all we said to santander is that there is a partition wall to come down to convert back to a house - they then warned that the value of the house may be less than the value of the two flats and may have to refer to their valuation team - then came back and said their underwriters will not allow due to the increased risk - I have checked with other estate agents and there is virtually no risk - most were of the opinion it would raise the value if the conversion was done well

Their mortgage advisor agreed when I argued this made no sense but said he could not change anything - anyone with any ideas how we deal with this would be gratefully recieved - I have a very competitive deal with Santander which is also portable so don't want to give up the mortgage

Thrugelmir

delilah12345 wrote: »

is that there is a partition wall to come down to convert back to a house

No other changes required to the layout to restore it to a house? Sounds far too simple.

delilah12345

No other layout changes - one single bricked up doorway
There is obviously a kitchen in one of the upstairs bedrooms but this isn't anything structural - thats why I can't understand the statement from the underwriter - they just have it in their head it will devalue if it changes

amnblog

House converted without P P to two flats?

I am not surprised Santander will not touch it. Who handled the application? Ridiculous.

Options would appear to be:

Wait for owner to correct it then purchase.

Obtain commercial funding for the purchase, convert it back and then remortgage as residential.

delilah12345

Spoke to both mine and the sellers Solicitors this morning - they say it is not two flats it is a house (albeit with a partition wall stuffed into a doorway) - it is on land registry as one house and also marketed as one so legally it should be treated as one

still not sure how this sits with Santander - am waiting a response - I would have thought they wouldn't particularly care as long as the valuation covers their risk

To correct it is to knock out one not supporting wall - I have seen houses with two kitchens - one up and one down before so I can't see how that would affect it

amnblog

Neither your solicitor, nor the seller solicitors will be lending you any money so their view is irrelevant.

delilah12345

Well thanks for the help

I guess I had better tell the seller they have a problem
I may suggest they knock out the door way so it is one complete house and hope that satisfies
Still doesn't guarantee my underwriting though