Difficulty finding lender for a property

Montysma

We have had an offer of 330k accepted on a property.
Property consists of main house, an attached cottage and 10hectares of land. We need a mortgage of 80k.

Purchase is hitting lending problems due to
1. 10k Retention recommended on home report due to damp work needing done.
Found lender who is ok with this.

2 lenders tend to limit amount of land acceptable on residential purchase.
Found lender ok with this so long as we don't intend commercial use.

3. This is the weird one; lender said they CANNOT LEND if there are " 2 titles on the one deed", that is , it all has to be on a single title.

However my alternative lender said they cannot lend UNLESS the land, house and cottage are SEPARATE titles.

So criteria are reversed.
Finding it hard to get to bottom of what the titles actually say. Neither selling agent or my lawyer being helpful.

We own another property out right. Is it feasible to get a mortgage of 80k against this house and use the money to purchase the complicated house? ( Complicated house would become our family home).

Is this feasible or legal?
Would we run into 2nd property purchase taxes?
( We are in Scotland).

csgohan4

Did you find them through a broker or through your own research?

Montysma

Bit of both. I had found Skipton's and Nationwide who were then both suggested by estate agent broker having a quick look.
Nationwide, after several phone calls giving the details said they had no issue. Based on this I did full application/ credit search, which was fine to lend to us. 5mind after leaving branch I got email saying that unless the various " bits" of the property were on separate titles, they do proceed. So annoyed as I had explained the situation, they were given the info well in advance before I made an appointment. Now have a pointless application and search registered against my name.

Tomg84

Probably best to talk to some brokers to see what they can do.

Montysma

Yes I think that's the I have to go. Seems odd that Skipton's and Nationwide have "title criteria" completely in reverse of each other, I would have thought these things were reasonably consistent.

I went back to Skipton's after Nationwide fiasco and to be fair to them they are now going to do a search on the titles for themselves and give me an informed reply rather than doing another application.
I hadn't expected many problems as the LTV is only 24% so i thought we were in a strong position.

davidmcn

Montysma wrote: »

Yes I think that's the I have to go. Seems odd that Skipton's and Nationwide have "title criteria" completely in reverse of each other, I would have thought these things were reasonably consistent.

I went back to Skipton's after Nationwide fiasco and to be fair to them they are now going to do a search on the titles for themselves and give me an informed reply rather than doing another application.

Does the Skipton actually have in-house staff qualified to do this? Your solicitor really ought to be investigating this. The "all on one title" rule isn't one I've encountered before and I don't understand the logic behind it (anyone?).

amnblog

A good broker would have positioned the property properly before any application had gone in.

Continuing to try to sort this yourself is fruitless.

Why did you not use a Broker in the first place?

Montysma

I didn't use one because I hadn't realised it was a difficult property. I have obtained various properties over the years with no issue. Also, it seemed that the broker was having the same issues as me with differing info being given out

My lawyer is reluctant to pursue titles "until I have mortgage secured" but I can't secure mortgage without detail on the titles! Lawyer now pursuing deeds with much eye rolling and a lot of pressure.

Maybe I need to change both broker and lawyer.

amnblog

Or perhaps give them the benefit of the doubt and trust them to do their jobs?

Montysma

Well I would if they were doing it.

davidmcn

Montysma wrote: »

My lawyer is reluctant to pursue titles "until I have mortgage secured" but I can't secure mortgage without detail on the titles! Lawyer now pursuing deeds with much eye rolling and a lot of pressure.

Hmm, doesn't really bode well for the remainder of the transaction. (Usually!) one of the advantages of buying in Scotland compared with England is the solicitors are a bit more proactive, but there seems to be a tendency now not to lift a finger until the mortgage offer comes in.