Splitting Title/Getting Mortgage on title with two properties

annarose03

Hello there I hope someone can help me. My family are looking to buy a property jointly and live there with my parents, brother and his wife. It's a cottage attached to a converted barn and we're struggling to get a mortgage as we are too residential for a commercial mortgage but too commercial (two kitchens) for a residential mortgage. I'm wondering if we need to split the title so we can buy the barn with cash and get a mortgage on the cottage but I don't really know where to start or who to go to for that kind of specialist advice. I've been told by a solicitor it's possible to have two transfers of part rather than one transfer of whole. But would a mortgage provider lend on the basis of part of the whole e.g. the cottage but not the barn? Any thoughts or advice on how we can do this would be so appreciated as we are all in love with the property. Many, many thanks.

eddddy

Depending on the layout of the property, sometimes converting the second kitchen to a utility room or laundry room will satisfy the lender's valuer.

If the seller removes the cooker (and microwave etc) from the second kitchen, that might be good enough. The seller may be happy to do that, on the basis that otherwise it will be difficult to sell to anyone needing a residential mortgage.

Falafels

I’m selling my house and garden under a transfer of part, and my purchaser has had no problems getting a mortgage. (I also own a small area of land which isn’t part of the sale). 

The vendor would need to initiate the process, and the legal fees are considerably higher than it would be for a transfer of the whole. I asked about splitting the title, on this board, and the Land Registry rep said that was unnecessary as when one part is sold, it creates a new title, leaving the old one with the old title number. It might be an idea to ask the LR for further clarification on this if you’re not sure.

But you’d need to discuss this with your vendor before you can do anything.

AdrianC

annarose03 said:

It's a cottage attached to a converted barn and we're struggling to get a mortgage as we are too residential for a commercial mortgage but too commercial (two kitchens) for a residential mortgage.

Never mind the title, look at the property/ies itself/themselves...

If you just happened to view, how would you perceive it/them?
A single property that just happens to have two kitchens?
Or two properties that just happen to adjoin?

Either way, I'd have thought a decent mortgage broker should be able to resolve this fairly easily.

annarose03

Falafels said:

I’m selling my house and garden under a transfer of part, and my purchaser has had no problems getting a mortgage. (I also own a small area of land which isn’t part of the sale). 

The vendor would need to initiate the process, and the legal fees are considerably higher than it would be for a transfer of the whole. I asked about splitting the title, on this board, and the Land Registry rep said that was unnecessary as when one part is sold, it creates a new title, leaving the old one with the old title number. It might be an idea to ask the LR for further clarification on this if you’re not sure.

But you’d need to discuss this with your vendor before you can do anything.

Thank you I think this is the way we need to go as it is def two separate properties. Can I ask what the legal fees have been? (No need to answer tho) and if there is anyone you would recommend for the legal work?

Many many thanks

Falafels

annarose03 said:

Falafels said:

I’m selling my house and garden under a transfer of part, and my purchaser has had no problems getting a mortgage. (I also own a small area of land which isn’t part of the sale). 

The vendor would need to initiate the process, and the legal fees are considerably higher than it would be for a transfer of the whole. I asked about splitting the title, on this board, and the Land Registry rep said that was unnecessary as when one part is sold, it creates a new title, leaving the old one with the old title number. It might be an idea to ask the LR for further clarification on this if you’re not sure.

But you’d need to discuss this with your vendor before you can do anything.

Thank you I think this is the way we need to go as it is def two separate properties. Can I ask what the legal fees have been? (No need to answer tho) and if there is anyone you would recommend for the legal work?

Many many thanks

The legal fees are slightly less than double what they would have been if it had been a straightforward transfer of the entire freehold on a house priced under £200,000 and with no mortgage. I found my solicitor by doing a google search including the term ‘transfer of part’, selecting four firms. One did not respond at all; I got one reply from a paralegal who obviously hadn’t read my email properly; one from a paralegal who hadn’t read my email properly and was really arrogant and condescending in his response - and one, straightforward, response which gave me all the information I needed. It was during the March lockdown, so this may have influenced the outcome!

I must stress, though, that it is the vendor who appoints the solicitor to carry out the transaction - not the purchaser - and you’d need to come to an agreement with them that they’d be prepared to do it. Especially as the legal fees are so much higher.

Good luck! xxx