Buying with 2 title deeds using 1 mortgage - Which lenders?

SwanseaWelsh

Hi all. I hope someone can help as we are at wits end.

We viewed a property which is up for sale (its 2 semi detached houses joined and for sale together)
house one is a regular size downstairs but then takes up the full upstairs of both properties leaving property two as a ground floor self contained flat.

We were looking to buy with the intention of also knocking through downstairs - Essentially making one massive house
(We understand the logistics etc - council tax merger / building regs / power routing etc that's not why I'm here ) 

The issue I have is that the 2 houses are being sold as one listing on estate agents site BUT the house and flat are down with land registry as 2 title deeds.

My current lender - Nationwide will not lend on a -  2 deeds / 1 mortgage basis. I have spoke to Natwest who also declined.

Has anyone ever done something like this? If so could you PLEASE recommend some lenders for me to call and ask the question.

We really really would love to get this property and do the work to make it what we require. But we are stumped at the moment with lenders saying NO

Any info absolutely appreciated and If you require further explanation please let me know.

MWT

One for a broker, but it sounds like you have a flying freehold exceeding 25% of the floor space so that may be tricky even if you can find a lender willing to lend on both titles together...

Are they both freehold though or is the flat leasehold?

SwanseaWelsh

MWT said:

One for a broker, but it sounds like you have a flying freehold exceeding 25% of the floor space so that may be tricky even if you can find a lender willing to lend on both titles together...

Are they both freehold though or is the flat leasehold?

Both freehold both same seller. 

SwanseaWelsh

MWT said:

One for a broker, but it sounds like you have a flying freehold exceeding 25% of the floor space so that may be tricky even if you can find a lender willing to lend on both titles together...

Are they both freehold though or is the flat leasehold?

Would it be tricky considering we are going to be turning the 2 houses in to one full one then? 

Or do they not look at that when deciding to lend etc? 

user1977

I don't think it's really the title deeds point that's an issue (pretty commonplace for "normal" properties to be spread over more than one title and shouldn't be an issue as long as everything put together comprises a marketable property) - it's that they're physically two properties, and you're proposing to knock them together. I think you're likely to need development finance until you've completed the work, and only be able to remortgage to a standard residential mortgage once you've got a habitable single house.

MWT

SwanseaWelsh said:

MWT said:

One for a broker, but it sounds like you have a flying freehold exceeding 25% of the floor space so that may be tricky even if you can find a lender willing to lend on both titles together...

Are they both freehold though or is the flat leasehold?

Would it be tricky considering we are going to be turning the 2 houses in to one full one then? 

Or do they not look at that when deciding to lend etc? 

I'd say user1977 is right, this isn't like the more normal situation where there is additional land on a separate title, this is two dwellings now and one dwelling when you've finished.

If you need the value of both to make the mortgage work then you are probably looking at development finance first, unless you have the cash to buy the flat outright and raise the mortgage against the larger property, but that may not work for you.

SwanseaWelsh

MWT said:

SwanseaWelsh said:

MWT said:

One for a broker, but it sounds like you have a flying freehold exceeding 25% of the floor space so that may be tricky even if you can find a lender willing to lend on both titles together...

Are they both freehold though or is the flat leasehold?

Would it be tricky considering we are going to be turning the 2 houses in to one full one then? 

Or do they not look at that when deciding to lend etc? 

I'd say user1977 is right, this isn't like the more normal situation where there is additional land on a separate title, this is two dwellings now and one dwelling when you've finished.

If you need the value of both to make the mortgage work then you are probably looking at development finance first, unless you have the cash to buy the flat outright and raise the mortgage against the larger property, but that may not work for you.

Hmmmm 😔 lots of food for thought.... Iv booked in with the MAB for an appointment tomorrow. If anyone has seen it done before or know of lenders willing to help I guess it'll be them? 

See what they have to say. Thank you for the advice though both. May end up being a non starter now... Gutting if so