Mortgage broker - ask me anything

surferrosa100

Hello! I was just wondering if anyone can give me some advice/reassurance? We've made an offer on a house which has had the basement part converted to a self contained 1 bed flat. Now we don't want the flat but the house is perfect so our intentions are to remove the kitchen part and turn it into a gym/office for wfh. The house is on one title and the flat doesn't have separate utilities or council tax. How easy would it be to get a mortgage on it at normal rates? Our LTV is 80%, affordability is good and so are our credit ratings. We will be talking to a broker if the offer is accepted. Thanks in advance!

K_S

surferrosa100 said:

Hello! I was just wondering if anyone can give me some advice/reassurance? We've made an offer on a house which has had the basement part converted to a self contained 1 bed flat. Now we don't want the flat but the house is perfect so our intentions are to remove the kitchen part and turn it into a gym/office for wfh. The house is on one title and the flat doesn't have separate utilities or council tax. How easy would it be to get a mortgage on it at normal rates? Our LTV is 80%, affordability is good and so are our credit ratings. We will be talking to a broker if the offer is accepted. Thanks in advance!

@surferrosa Based on the limited info in your post, it may limit your pool of lenders but shouldn't be to the extent that you'll see a big jump in rates.

angeling1129

Hi Can I ask you about this situation

We just bought a BTL property that only has 63 years left on leasehold, but the vender has agreed with the freeholder about extending the leasehold till 999 years on completion day, which is approved by the estate agency. 

Under this situation, is it easy to get a BTL mortgage? Many people told me a BTL mortgage can be offered with the condition about the leasehold has been extended to 999 years.

Many thanks 

K_S

angeling1129 said:

Hi Can I ask you about this situation

We just bought a BTL property that only has 63 years left on leasehold, but the vender has agreed with the freeholder about extending the leasehold till 999 years on completion day, which is approved by the estate agency. 

Under this situation, is it easy to get a BTL mortgage? Many people told me a BTL mortgage can be offered with the condition about the leasehold has been extended to 999 years.

Many thanks 

@angeling1129 Do make sure that you know exactly what is being proposed here and the risks that come with it. The Estate Agent works for the vendor so whatever they say should be taken with a large pinch of salt.

Usually what happens with a lease extension on completion is that the vendor agrees with the freeholder and initiates the extension process and the buyer is allowed to continue the lease extension process after completion without having to wait the minimum 2 years. It would be unlikely that the actual extension would full take place on completion day.

Normally, the lender would go by the actual lease years left, 63 in this case. There are specialist lenders who will consider lending with <70 years subject to criteria. Sorry, I don't know off of the top of my head about the scenario you have described where extension is done by completion.

angeling1129

Thank you so much for your reply, I will keep in my mind now

The agency send me this message below on the day we made an offer

Good Afternoon,

Yes this is correct, the seller is contacting her solicitor on Monday to see where they're at with the lease extension as she's already requested this be actioned and has been agreed with the freeholder. The lease will be extended so that when you own the property it's got the updated lease length and not the current length in place.

angeling1129

also, the agency send me another message yesterday

Good Afternoon,

The lease extension will be put in place on completion. So the date of completion will be the start of the 999 years.

shaysonic

Hi, me and my partner would just like some advice on our mortgage and HTB application.

We've submitting everything and got our property valuation booked and also received our ATP today! Unfortunately due to personal circumstances we are unable to use our full deposit sum - was a sum of £40k. We are now having to reduce this value to £24k to meet the 5% deposit threshold for the property we are looking to buy.

Given that our ATP was approved and the mortgage application is currently with the underwriters, if we were to reduce our deposit sum from 8.733% to 5% would this impact the outcome of our application severly? We are aware that we would need to resubmit our HTB application and amend the equity value we are looking to borrow to a higher sum.

Is there any chance or scenario where the HTB agent or the mortgage provider might decide reject/decline our applications if we opted for a 5% deposit instead?

K_S

shaysonic said:

Hi, me and my partner would just like some advice on our mortgage and HTB application.

We've submitting everything and got our property valuation booked and also received our ATP today! Unfortunately due to personal circumstances we are unable to use our full deposit sum - was a sum of £40k. We are now having to reduce this value to £24k to meet the 5% deposit threshold for the property we are looking to buy.

Given that our ATP was approved and the mortgage application is currently with the underwriters, if we were to reduce our deposit sum from 8.733% to 5% would this impact the outcome of our application severly? We are aware that we would need to resubmit our HTB application and amend the equity value we are looking to borrow to a higher sum.

Is there any chance or scenario where the HTB agent or the mortgage provider might decide reject/decline our applications if we opted for a 5% deposit instead?

@shaysonic As long as you continue to meet affordability (as per the H2B calculator and as per the lender) with the higher loan amount, it *should not* lead to a drastically different outcome.

K_S

angeling1129 said:

also, the agency send me another message yesterday

Good Afternoon,

The lease extension will be put in place on completion. So the date of completion will be the start of the 999 years.

@angeling1129 That does sound like it will be extended prior to/at completion. Sorry, I have no idea of how different lenders look at that without speaking to a few. Hope it all works out in the end, good luck!

suejb2

getmore4less said:

suejb2 said:

Hi.need to remortgage (May). Have a balance of less £27000 with three sub accounts. 1,2 3. 1&2 are lifetime trackers 1.09% and 3 is fixed (May) 2.19%. 

House has an approximate value of £150000.
With  9 years left on the mortgage should I commit to a long term or do a 2 or 3 year? 

Thank you.

Are you overpaying or letting it run for the 9 years.
what size are each bit?

1&2 22000
3 less than £5000
not overpaying .