Buying property and piece of adjoining land at same time?

country_escape

My wife and I have had an offer accepted on a house we'd like to buy. We've got the mortgage in principle sorted today. The MIP notes that they're happy to lend us more than we're applying for.

What we've learnt this evening, is that a parcel of land next door to the property is also currently for sale, at what feels like a bargain price to us.

We definitely can't afford to buy it outright though. What are our options?

I've never bought a house before and don't pretend to be anything of an expert, but I feel in theory it should be possible to get one mortgage that covers both purchases, given that we could acquire both property + land at the same time, even though they come from separate vendors/estate agents.

I suspect that's very naive of me though, and that buying this extra parcel of land is actually going to require us to come up with cold hard cash to pay for it?

Any advice appreciated - I'll obviously be talking to the estate agent tomorrow, but wondered what advice I could glean on here first.

Thank you

LRmortgage

They house and land will be on separate titles, so it is unlikely that a lender will allow you to buy them together with the same mortgage.

How tight are you on affordability with the MIP you have on the house? Could you possibly borrow more on the house and put in less deposit? Leaving the extra cash available to buy the land?

I have no idea if that would be enough as you haven’t provided any figures.

country_escape

Not really, no. We're putting down a 10% deposit which leaves us with £15k in the bank but the land is £25k. I believe putting down a smaller deposit would cripple us in terms of repayments.

davidmcn

LRmortgage wrote: »

They house and land will be on separate titles, so it is unlikely that a lender will allow you to buy them together with the same mortgage.

I don't see why that would be a problem, as long as they get a charge over the whole lot - it's fairly commonplace for properties to be spread over more than one title.

In fact I've seen mortgage conditions which say the opposite i.e. if you buy neighbouring property then you must add it to the mortgage (the lender won't want to risk repossessing a property if there's a chunk of the garden or an extension on the land which wasn't charged to them).

[Deleted User]

As long as the surveyor is clear what they are to value I cant see a mortgage company having an issue. Presumably you would have a Transfer done to bring the land in to the property to form a single plot?

I dont see it being any different to when people sell a property but want o retain part of the land. Just get a transfer of part done and the lender refers it back to the surveyor to make sure they valued the correct plot

country_escape

Deleted_User wrote: »

As long as the surveyor is clear what they are to value I cant see a mortgage company having an issue. Presumably you would have a Transfer done to bring the land in to the property to form a single plot?

Absolutely.

[Deleted User]

randomly picked the phone up to santander as first one that popped in to head (they dont need to go through security so are a lot quicker to speak to).

They said they would be fine with this as long as the conveyancer put both on to a single title and held a charge over the whole thing. Would be down to valuers comments on the nature of the land (if it could be used for commercial or agricultural purposes then sometimes an issue

Speak to a broker and get them to make some calls. With something like this I would usually send both sets of property details to a business manager for the lender and get a pre-val inquiry done to make sure they are happy in principle and then ive also got it in writing to cover myself

country_escape

Thanks for all of your responses. It turns out the plot of land is only currently for sale as part of a larger plot; if whoever buys that doesn't want this bit, we could get it, but certainly not before we move in.