Amalgamating freehold titles if one is mortgaged

horaceblackbeard

Hi, would appreciate any info. I'm in the process of buying the house behind me (terrace block) to knock through.
I own my property outright however will need to remortgage in order release cash in order to buy the house behind for cash.
Once I have purchased the property and made the houses into one, I understand I will need to amalgamate the titles in order to remortgage against the whole property as one. 
My question is, is this possible, if one title is in my name but the other title is under a mortgage lender, as it will be in the name of the lender? Or will it?

Slithery

horaceblackbeard said:

Once I have purchased the property and made the houses into one,

You won't be allowed to do this if you have a residential mortgage on either of the properties.You'll need specialist development finance instead.

Don't forget you'll also need planning permission which may not be granted.

You'll need to get both of these things sorted before even thinking about starting to buy the other property.

user1977

You'd need consent from your lender to do the works, and it's likely they'll refuse (they won't want to risk repossessing half of a building site). I think you'd need to get development financing while you do the works and then remortgage when you've finished.

horaceblackbeard

Slithery said:

horaceblackbeard said:

Once I have purchased the property and made the houses into one,

You won't be allowed to do this if you have a residential mortgage on either of the properties.You'll need specialist development funding instead.

Don't forget you'll also need planning permission which may not be granted.

Thanks - could you give me an example of such a lender - I've no idea where to start.

user1977

horaceblackbeard said:

Slithery said:

horaceblackbeard said:

Once I have purchased the property and made the houses into one,

You won't be allowed to do this if you have a residential mortgage on either of the properties.You'll need specialist development funding instead.

Don't forget you'll also need planning permission which may not be granted.

Thanks - could you give me an example of such a lender - I've no idea where to start.

Probably better asking on the Mortgages board where the brokers hang out. It won't be cheap!

horaceblackbeard

I'm thinking the simple way forward is to find cash to purchase the house without remortaging mine, amalgamating titles and then mortgaging the combined property and pay back wherever I got the money from. 

eddddy

horaceblackbeard said:

I'm thinking the simple way forward is to find cash to purchase the house without remortaging mine, amalgamating titles and then mortgaging the combined property and pay back wherever I got the money from. 

That sounds much more achievable.

Obviously, the mortgage lender (or their solicitor and valuer) will be fussy about the combined property - so you'd need to make sure all the planning consents, building regulations, titles etc are all done properly.

canaldumidi

horaceblackbeard said:

Slithery said:

horaceblackbeard said:

Once I have purchased the property and made the houses into one,

You won't be allowed to do this if you have a residential mortgage on either of the properties.You'll need specialist development funding instead.

Don't forget you'll also need planning permission which may not be granted.

Thanks - could you give me an example of such a lender - I've no idea where to start.

Speak to a specialist broker. Duckduckgo is your friend!

"Develoment mortgage".