Property turned into flats but no permissions

delanos

Hopefully someone can set my mind at rest.
Seen a house that is currently divided into 2 flats. Apparently the owner did this 30 odd years ago but without planning permission or following any regulations.
I would like to buy the property but would need a mortgage of approx 100k.
I would want to buy it with the sole intention of turning it back into one property. There are tenants in both flats and after looking at the council tax for the property is down as separate abodes.
I have been told by a mortgage advisor that although affordability is not a problem I won't get a mortgage on it as the mortgage lenders would not give me 1 mortgage for 2 different properties and that the only option would be a commercial loan, then after turning the property back into one I could then apply for a mortgage.
It's fine if I have to accept this and forget about this property but I just want to check before I let it go. thanks in advance

deFoix

This doesn't make sense. Do you mean that you would like to buy BOTH leasehold properties sold by the same seller at the same time as they are marketed as separate titles?

What does the Title Plan say?

eddddy

Boler1985 wrote: »

This doesn't make sense. Do you mean that you would like to buy BOTH leasehold properties sold by the same seller at the same time as they are marketed as separate titles?

Delanos doesn't say the flats are leasehold.

I suspect the seller owns a freehold property, which they split into two flats - both of which are rented out.

delanos

Yep that's right
I have just downloaded the title deeds and plan and it shows as just one freehold property. It's being sold as one unit

Shakin_Steve

And the tenants? You may find that asking them to find somewhere else to live could prove lengthy and expensive.

davidmcn

The advice seems correct - it's a development project with high risks for the lender, so you're looking at commercial criteria and rates.

delanos

the only person I've spoken to at this stage is the estate agent and he said it you get a mortgage,on completion "serve them notice straight away and they will be gone in a month" I took it at face value that that was ok. Unfortunately I have never been a landlord and only owned freehold - is that advice a bit too easy?

delanos

Thanks David. Disappointing though it is to hearIf that is the case I think I need to just let it go. I had to be sure that others in the know say the same thing
Thanks

Annisele

delanos wrote: »

the only person I've spoken to at this stage is the estate agent and he said it you get a mortgage,on completion "serve them notice straight away and they will be gone in a month" I took it at face value that that was ok. Unfortunately I have never been a landlord and only owned freehold - is that advice a bit too easy?

It sounds as though you've already decided not to go ahead on this one. But to put it *very* mildly - it sounds to me as though the estate agent doesn't have even the beginnings of a clue about what he's talking about.

Depending on the type of tenancy the current residents have, it might not be possible to evict them at all - you might have to wait until they die. That's unlikely, but (in England and Wales at least) an assured shorthold tenancy is very likely. That requires at least two months notice, and could be a fair amount more if the tenants are in a fixed term. And even at the end of the notice period, there's no guarantee they'd move out.

[Deleted User]

Yep, it would take a miracle, a lot of money donations to said tenants, and /or lawbreaking to make them move out in a month.

The EA is just saying whatever he/she has to to keep your interest. I very much doubt its down to ignorance (yup, I am a cynic lol).

The present owners SHOULD give notice to the tenants quickly (now) to get them to move out so exchange happens with vacant possession. Some mortgage lenders will insist on this.

I don't know much about the finances but wonder if asking an independent mortgage adviser (defo not one recommended by the EA) would come up with some ideas?

G_M

delanos wrote: »

the only person I've spoken to at this stage is the estate agent and he said it you get a mortgage,on completion "serve them notice straight away and they will be gone in a month" I took it at face value that that was ok. Unfortunately I have never been a landlord and only owned freehold - is that advice a bit too easy?

The EA has only one thought in his head: pursuade you to buy so he gets his commission.

He is talking *****!

1) you can't get a residential mortgage unless they are gone before completion.
2) if they are still there on Completion, you'll be a landlord with 257 laws and regulations to comply with.
3) your'll need landlord insurance
4) it could take several months to get them out.
5) depending on their actual tenancy, it could take years.

and so on......

Do not take one step towards buying this until they are gone - you'll be wasting money.

As for the split property, what is your intention? To keep it as separate flats or use it as a single home?

Are there 2 council tax bills? 2 lots of utilities? 2 postal addresses? Or just 1?