Barclays mortgage and splitting Title deeds

needadvice2010

Morning guys,

Hope everyone is well. Was hoping someone can answer a few questions for me regarding Barclays mortgages.

My mortgage broker has identified a BTL mortgage through Barclays which all sounds great and meets my needs. However she couldn't answer my specific question regarding splitting title deeds on purchase.

So here is my scenario - buying a 3 bedroom cottage as BTL and there are 3.5 acres attached to it. There is an outbuilding on said land (has 2 rooms and a toilet but not functional) I want to split off 3 acres with the outbuilding on it so I can extend and convert that into a dwelling for myself (I need land as I have lots of animals). Is this something Barclays will entertain? The home report value was completed and valued at 230k and we are paying 225k.

Additionally, I'm concerned my credit score will prove problematic...on Equifax I'm rated as good 445 but on Experian I am poor at around 700. The reasons stated are credit utilisation as I had over 50% on my credit cards however those are being paid off in the next 2 weeks but obviously that will take weeks and weeks to update on my credit file. I have 2 late payments over 22 months ago (I had cancelled DD for minimum payment for a credit card I thought I had paid off) Also I didn't realise I had been bumped off the electoral register....now sorted and registered but again doesn't update till the 1st August. Do Barclays lend to someone with fair-good scores? Or do they like excellent scores? I don't want to waste an application if the likelihood of them offering is low

Thanks


Kelly

davidmcn

• At the very least, the BTL mortgage will need to be restricted to the property being let out, as one of their criteria is that you can't live there. So does the valuation of that on its own stack up? Or will you need a separate mortgage for the house you're going to live in?
• You won't be able to mortgage the "new" house on its own (under a standard residential mortgage) until it's actually habitable, so how are you going to fund the build? There are self-build mortgages, but with more stringent criteria.
• Planning issues - will need to jump through whatever hoops are needed to create an extra house (assuming the outbuilding didn't already have consent as a separate dwelling) as well as the detail of what you're building. What is current permitted use given there's a lot of land? And what sort of consent do you need for whatever you're doing with your "lots of animals"?
• Splitting title - will need to consider whatever shared access or services are needed and ensure both properties have title rights to them.

Might be easier to buy whole thing under a residential mortgage and move in first while you do the work, and then remortgage/split title. But you may still have problems if they view the "outbuilding" as an additional house (is that what it was?), as most residential mortgages can only be over a single property.

I'll let others answer re. your credit rating.

amnblog

Your Broker could not tell you if splitting the title on purchase is possible?

If Barclays are securing their mortgage on property AB, why would they then let their security drop to A while and you take B away for your alternate use?

As David outlines above. if you need lending, this is a hell of a lot more complex than you may think.

You need a new Broker.

needadvice2010

They said splitting it on purchase is fine however it's more if their valuer's view the house and garden as enough to cover the borrowings.

The outbuilding is not a house it was an old gate keepers office for when there was a tile quarry there about 50 years ago. It's not habitable as is. But the funding for that isnt an issue the issue is specifically will Barclays allow it and how "good" my credit score needs to be to actually get the BTL. And my animals are pets there is no change of use involved. I literally just want a nice big fenced in area for them.

As for living in it...I'm not going to be living in the cottage hence why I want the land split as I will be starting building work as soon as planning permission is approved and again that isn't an issue.

Thanks for the replies thus far

sparkey1

Take a read of this. Its the lending criteria for Barclays.

https://intermediaries.uk.barclays/home/lending-criteria/