Two properties into one

Karen_A-M

The house I live in had an extension built onto it in the 50's. At some point that part was sold off separately. It is now up for sale and I want to buy it - for cash. I have a mortgage on my current house. There is already a door between the two properties (boarded up from both sides) and the water supply is shared. Currently the gas and electricity are separate services in each house.

I want to return the property to it's original state ie make the two houses back into the one property it used to be. My mortgage company have said it would be an unacceptable risk...

There must be a solution but I don't know what it is. I don't understand what the problem is as I am not asking the mortgage company to extend my mortgage or lend me anything at all. I'd be paying the same mortgage I pay now but the house would be bigger.

Any advice or suggestions?

natrapx

Get a new mortgage company?

eddddy

Karen_A-M wrote: »

I want to return the property to it's original state ie make the two houses back into the one property it used to be. My mortgage company have said it would be an unacceptable risk...

What precisely have you asked the mortgage company if you can do?

If you've said you want to keep the properties on two separate titles, but have a door between them...

... I guess their concern is that if they have to repossess the mortgaged property, it would be very difficult to sell if it has a door to/from another property.

TBH, I'd have been tempted to go ahead without telling the mortgage lender.

Or do you plan to merge the titles? In which case, I guess the whole title would need to be mortgaged.

You also need to decide whether to insure it as two dwellings or one, and how you want it treated for council tax etc.

(Getting the insurance right is the most important. If it burns down, you don't want the claim refused because you have insured incorrectly.)

Karen_A-M

My solicitor said I had to tell the mortgage company my intentions...which were to buy next door for cash and open the doorway between the two so I can restore them to the one property it used to be.
So in answer to your question...I haven't actually asked them to do anything...which is why I don't understand their response. They know I am a cash buyer.
I want the houses to eventually be a sole property by which I mean one set of services, one council tax and a mortgage that encompasses the entire property. I'm worried by my mortgage company's response that all the other mortgage companies will say the same thing. The other thing I didn't mention before is that this other house sits completely within my boundaries, it has no land of it's own and only has access rights to the door.

onlyroz

Do you need to officially merge them? Can't you just buy next door, open up the doorway, but leave it such that it could be closed again if necessary? You'll devalue both places if you merge them into one.

marksoton

Risk. Try another lender.

And expect to pay SDLT at the higher rate.

HappyMJ

Karen_A-M wrote: »

My solicitor said I had to tell the mortgage company my intentions...which were to buy next door for cash and open the doorway between the two so I can restore them to the one property it used to be.
So in answer to your question...I haven't actually asked them to do anything...which is why I don't understand their response. They know I am a cash buyer.
I want the houses to eventually be a sole property by which I mean one set of services, one council tax and a mortgage that encompasses the entire property. I'm worried by my mortgage company's response that all the other mortgage companies will say the same thing. The other thing I didn't mention before is that this other house sits completely within my boundaries, it has no land of it's own and only has access rights to the door.

I'd buy it for cash then merge the two titles into one and remortgage elsewhere.

You'll most probably need some help to combine the titles.

PasturesNew

You could just buy the house next door, for cash as you say .... and rent it out until such a time as the mortgage company don't need to be involved, or you can make different arrangements.

Getting it at least makes the future plan possible.

Bossypants

PasturesNew wrote: »

You could just buy the house next door, for cash as you say .... and rent it out until such a time as the mortgage company don't need to be involved, or you can make different arrangements.

Getting it at least makes the future plan possible.

Just quoting this for emphasis. Buy the place, then decide what you want to do with it and how you will achieve it. The mortgage company don't need to be informed that you are buying next door if you do not need them to lend you money.

Karen_A-M

Firstly thanks for everyone's input....
A couple of you have mentioned about either leaving the adjoining doorway in such a way as it could revert to two houses again easily, or to rent out the other side for a few years - the thing is that the reason I need next door too is that my side is too small. The bathroom is downstairs in a damp tiny space, as is the kitchen (and I mean tiny) so I basically have one room down stairs. Although there could be space for the bathroom upstairs it is technically difficult (won't bore you with why but have had a number of people look into it). I have a 2yr old so using our one downstairs room as lounge, playroom, place to eat and for me to work in is very difficult. We need the space. (Until early this year I also had my very ill husband in that room too but he sadly passed away). Our intention had always been to get next door so he could have his own space. Although that's obviously no longer relevant I really want to continue with our plans.
Sorry, probably oversharing there...

edwink

If I had the cash like you I would buy it now in case you never get the chance again or for a very long time. You can deal with the rest later but in the mean time at least it is yours which is what you and your late husband wanted.

If you tell your mortgage company later they can hardly take the new half off of you as it is yours.