Is it possible to purchase two properties with one mortgage

Kates_2

Hi,
I am in the process of purchasing a pair of flats and am finding that there is some confusion with regards to the mortgage set up for this.
The flats are being sold together for one price and are a ground floor and upper maisonette (ie: three floors in total). Each flat has a separate entrance.
It is my intention to live in one flat and to refurbish and sell the other flat.
Can anybody out there tell me what the best mortgage set up is for this? Is it possible to get one mortgage for the pair and then re-mortgage when / after selling one of the flats or do I need to get a mortgage for each flat separately?
Also, how would these new mortgages be affected (ie: borrowing amount) given that I already have a buy to let mortgage on another property (approx 50k equity in this property)?
Any advice / thoughts would be much appreciated.
Kates

Conrad

2 separate property titles means 2 separate mortgages. You may potentialy use 1 lender but will still need 2 mortgages.

Borrowing amount is a complex area subject to many factors, but as a general principle if your existing B2L is 'self funding' it should have little baring on your new endeavour.

jill2002

Kates,

If the flats are being sold as one, does that mean that they are on one title Deed? If that is the case, you will be unable to sell one of the flats without permission from your lender (Which is unlikely as it will reduce the security on their mortgage). Also you will need to get the Title split by a solicitor - not as easy as it sounds !!! That will involve splitting the Title Deed, two lots of council tax, separating the gas, electricity etc.

However, if there is already two gas / electricity meters / kitchens etc it is possible that it is already two titles and therefore cannot be supported by one mortgage.

There is then the problem of leasehold / freehold - take solicitor's advice before going any further.

Jill

Kates_2

Hi guys,
Many thanks for your responses. I have arranged to meet with a solicitor for further advice.
Thanks for taking the time out to reply. Have a good weekend!

MortgagesInc

It may be worth trying The Mortgage Works too, I have a client who has got one mortgage spread across his residential property, a commercial property and a buy-to-let!!