2 properties on the same title

TimmyG1964

We have found a site containing 4 properties and a small commercial area that is being sold as a whole by a single vendor. Our offer has been accepted but our solicitors haven't received the deeds yet.

At the moment, there is a large 1910 house that the owner lives in, with a smaller attached cottage that her son lives in. The other 2 properties are a pair of 2010 semis let on 6 month ASTs. We plan to live in the large house and, over time, my parents to move in to one of the properties, my daughter in to another and turn the 4th one in to a holiday let.

The problem we have is that, from my understanding at least, the titles are messy.

The 2 older properties are on one title and have an internal doorway. Our broker has said that if they are on the same title, they can only have one kitchen & if they are split on to 2 titles the connecting door must be 'permanently' blocked.

The 2 modern 2010 semis are also on a single title and don't appear to have a right of access needed across the older properties drive.

The commercial area is on its own title but also doesn't seem to have the right of access it needs across the other 2 sets of deeds.

Our broker has said that as it is, the properties are not mortgageable and they must be on separate titles. Assuming the vendor is willing to rectify the problems, can anyone give me an idea of the timescales, work and costs involved in putting the houses on separate titles and correcting the access? Who would decided the boundaries & access rights? Is this something the vendor & I can agree on and her solicitor check or will we need a professional.

When (If!) sorted the properties meet our families short, medium long term needs so I'm reluctant to walk away unless I have to.

unforeseen

Don't worry about right of access. As they are all in the same ownership nothing needs to be recorded for it as the owner can go where he/she wishes. There is possibly something in the tenants contract that gives them access.

davidmcn

If you're buying the whole property at once, with one mortgage, I don't see a need for any separation of the title. If that's not what you're planning then let us know. Though I'm intrigued as to what sort of mortgage product you're taking out for this.

TimmyG1964

Thanks for the replies.

I should have said that we will be purchasing the 2 older properties with a residential mortgage and my daughter is purchasing the 2 properties that are let out using BTL mortgages.

We are all happy to make whatever changes are needed to the titles soon after we move in and would much prefer to do this. But the broker doesn't think that any of the lenders that will accept us will also allow us to complete with the title problems.

The 1910 house could work on 1 title but there are currently 2 kitchens and I've read several threads on here before that 2 kitchens in the same house cause problems for lenders unless the cooker/part of the 2nd kitchen is removed. We may be able to get the vender to agree to do this in the 1910 house but I can't see the tenants in the BTL houses agreeing despite one of them being a friend!

Another problem with the BTL's is that my daughter & her tenants need to get across 'my' land to get access to the BTL properties. There is a right of way marked on the title plan but it seems to be in the wrong place.

G_M

As others have said, the rights of access are not an issue for you. Once you will own the whole lot, you can grant whatever access rights you want to whichever of the properties you want.

But the mortgage issue IS relevant. Many mortgage lenders will, as explained, decline to lend where the mortgaged property has more than one kitchen etc.

The logic here is that they assume you might (probably will!) let out part of the mortgaged property meaning

a) you should have a BTLmortgage, not a residential one, and/or

b) if you fall into mortgage arrears, and they repossess, they'll find themselves owning a property with a tenant in situ.

As explained, options are

* physically combine the properties such that each Title comprises a single self-contained residential property. In practice, that means one kitchen. The door between would be fine if the kitchen in one 'house' was turned into a ..... study?

* Legally separate the properties into two. So remove the door between (pernenantly) and seperate the utilities etc if necessary, and create two separate Titles.

* you might find a lender prepared to take the property on as is, perhaps under a BTL or commercial mortgage, but you'd need to consult a good specialist mortgage broker. Try posting on the mortgage forum?

It is likely that any buyer of this site requiring a mortgage will encounter the same problem. So the sellers will have to either

* find a cash buyer, which will take them much longer and lower the price they can achieve, or
* take some action to make the site/properties mortgageable, either to facilitate you, or to facilitate the next morgage-dependant buyer

Perhaps a frank sit-down discussion with the sellers is in order?

Thrugelmir

What does the "small commercial area" consist of?

TimmyG1964

Thanks G_M, We are happy to work with the vendor to resolve the issues. I'd like to meet up with her to go through what we see as the problems. She is a single lady of an age and I think we got on quite well when we viewed. Her family built the original property. I don't think she has ever brought or sold a house and her son didn't seem interested when we viewed. I don't want to be seen to be putting pressure on her so would like to sit down with her and possible the selling agent as well. Time for tea & cake.

Thrugelmir - It isn't anything exciting, a small caravan site, so basically a field with electricity.

G_M

It's not anywhere near Northampton is it?

With 3, maybe 4 separate council tax charges?

TimmyG1964

No, it isn't near Northampton.


I'm intrigued though?!!!

G_M

Just sounded very like a property I viewed not so long ago. I was put off, amongst other things, by the multiple Council Tax bills.......