BTL mortgages for more unusual properties

djpix99

Hi,
I'm just looking for a little information around BTL mortgages for properties that don't fit the usual criteria, I want to understand if most mortgage companies would be interested or if I need to use specialist ones. I realise that if i was to purchase a property like this then a broker would be the best place to go, but at the moment i just want to understand so i can work out ROI on properties with a mortgage.

1. A house split into 2/3 studios/flats(on one title)
2. House with a separate basement studio flat(on one title)

SmashedAvacado

The bank's lawyers who will also be your lawyers will want to be sure that the property has the requisite permissions (you typically need planning permission to consolidate / split a dwelling). the split into studio flats would be more of a concern that the property with a basement flat in the basement (which is quite common).

Thrugelmir

Not that unusual scenario's. Like all applications yours will be judged on it's merits.

djpix99

So would people say that subject to all the planning/building regs being in order it would be possible to be accepted for some of the best buy btl mortgage deals from the likes of; Accord, Leeds BS, Platform?

BlackBird75

SmashedAvacado wrote: »

The bank's lawyers who will also be your lawyers

I'm not sure what you mean by this?
When I bought my house, with a mortgage, I paid for my own solicitor. He was not working for my mortgage lender. That would be a conflict of interest.

eddddy

BlackBird75 wrote: »

When I bought my house, with a mortgage, I paid for my own solicitor. He was not working for my mortgage lender. That would be a conflict of interest.

It's very likely that your solicitor was representing you and was also representing your mortgage lender.

If that was not the case, you would have known about it - as an extra solicitor would have been involved (i.e. the one representing the mortgage lender). And things would have probably moved more slowly.

BlackBird75

eddddy wrote: »

It's very likely that your solicitor was representing you and was also representing your mortgage lender.

If that was not the case, you would have known about it - as an extra solicitor would have been involved (i.e. the one representing the mortgage lender). And things would have probably moved more slowly.

Well I've bought two houses now. Both with mortgages. No one has ever mentioned that my solicitor was also working for my bank.
Is this standard practice?

Slithery

Yes.

There is a solicitor working for you and a solicitor working for your mortgage lender (to ensure that the title is worth the amount they are lending you), each lender has an approved panel of solicitors that they trust to work for them. In most cases your solicitor is on the lenders panel so the work that they do is used for both parties.

If your solicitor wasn't on the lenders panel then you should have definitely known about it as you would have had to pay for two lots of solicitors. This is why you should always ask if a solicitor is on your lenders panel before instructing them.