Mortgage issue 2 titles

2Frustrated2

Hi,

Im a new member and this is my first post… I couldn’t find a recent thread on this - can someone advise?

I’m looking to buy a property with a garage converted to annex which has been registered on a separate deed and separate mailing address. We want this property upon purchase to be one residential home. I have no sight of the deeds as yet but am being told by a broker that there will be issues with a mortgage lender (Santander currently) giving a mortgage on 2 separate deeds.

Is this anyone else’s experience / can anyone recommend a particular lender to approach or who has been amenable in the past? 

I am also being advised that it may have be consolidated into one deed before any mortgage lender will consider. This sounds odd too but may be true? 

Any help or advice would be much appreciated

thanks in advance  

[Deleted User]

you will find it near impossible to buy a property with 2 titles on 1 mortgage.   In the past lenders would just take a charge over all titles but doesnt seem to be an option any more.  

I recently looked in to this for a client and 70% of lenders said it had to be on 1 title prior to application with 25% saying they would take an application but wouldnt allow completion until it was on a single title.   I had a very very small number of lenders (3 or 4 small building societies) who said they would consider it subject to valuers comments.  

My client ended up buying the main property on a single title mortgage and then arranging to buy the other title for cash separately. Lenders telephone rep said this should work.   We got to offer but still going through legal process so whether it makes it all the way to completion when the solicitor reports the situation to the lender is unknown at this stage

2Frustrated2

Thanks for that info - that is really disappointing to hear from my perspective… 

My solicitor Is saying they cannot consolidate until after I own the property - so I guess it would be asking the vendor to do this if a mortgage lender won’t oblige 2 titles…. 

The ideal property for us but with these complications I fear I may lose it …

user1977

I would have thought the fact there's an annexe to be more of an issue for lenders than how the property is registered - has that been checked?

2Frustrated2

user1977 said:

I would have thought the fact there's an annexe to be more of an issue for lenders than how the property is registered - has that been checked?

Hi - it’s a converted garage and I don’t know to be honest this is such early days and we have had no sight of deeds or anything to do with buildings regs etc unfortunately

RAS

You (or your solicitor) can download the deeds for £3 each from the Land Registry gov.uk site. Might be worth it?

2Frustrated2

Definitely worth it I think thank you 

MoneyGeoff

10 years ago I bought a property that had two titles. The garden had a separate title to the house because the first owner bought the land and then during construction of the house they realised they needed more room so bought the extra land that became the garden. The mortgage lender didn't care. I asked my solicitor and the land registry about merging them into one and they both said there's no point and it's just a waste of money so I left it. It wasn't an issue when I came to sell the house either.

Land_Registry

As Deleted_User posts historically it wasn’t an issue for lenders and all had mortgage options to cover multi title purchases. It’s the same as an owner ‘wanting’ it to be a single title as it makes no difference from a registration perspective. 

Roll forward to now and lenders don’t always offer mortgage products in the same way so your choices are as covered already
If your lender won’t budge then ask the seller to apply to get it amalgamated (if that’s possible) and request expedition on basis of your purchase/expiring mortgage offer