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Mortgage advice - buying adjoining property
insomniac_ut
Posts: 33 Forumite
Hello,
We live in the upstairs unit of a semi detached house that's split into two units. We have the opportunity to purchase the downstairs and combine them into a single property.
We have planning permission in the works, and I have a tentative agreement with the seller downstairs (pending permission). However, not sure how to go about the mortgage.
We have a smallish mortgage (<40% LTV) on the upstairs which is larger and more expensive than the downstairs unit. So ideally what I'd like to do is release some equity from the upstairs into the downstairs so the aggregate equity of the combined property is <60% (don't want leverage).
Speaking to our existing high street bank with whom we have our current mortgage (who've refused to service our request), our best bet is to refinance the entire house a new mortgage and just do an early payment on our existing upstairs mortgage (the prepayment fees are not prohibitive).
Any suggestions about the right way to go about this?
Thank you.
PS - the reason the bank has refused to deal with us is because they feel that we'll be destroying value by combining two properties into one. However, the reality is exactly the opposite - we live in a residential part of west London where a full house would command a premium over two flats.
Thank you.
We live in the upstairs unit of a semi detached house that's split into two units. We have the opportunity to purchase the downstairs and combine them into a single property.
We have planning permission in the works, and I have a tentative agreement with the seller downstairs (pending permission). However, not sure how to go about the mortgage.
We have a smallish mortgage (<40% LTV) on the upstairs which is larger and more expensive than the downstairs unit. So ideally what I'd like to do is release some equity from the upstairs into the downstairs so the aggregate equity of the combined property is <60% (don't want leverage).
Speaking to our existing high street bank with whom we have our current mortgage (who've refused to service our request), our best bet is to refinance the entire house a new mortgage and just do an early payment on our existing upstairs mortgage (the prepayment fees are not prohibitive).
Any suggestions about the right way to go about this?
Thank you.
PS - the reason the bank has refused to deal with us is because they feel that we'll be destroying value by combining two properties into one. However, the reality is exactly the opposite - we live in a residential part of west London where a full house would command a premium over two flats.
Thank you.
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