2 Dwellings 1 Title

The_Famous_Flame

Dear Forumites,
OH and I have found ideal home to buy. In area we want, multiple bedrooms for growing kids/adults to live with us for many years. Problem is the lower ground has been converted to a purpose built flat which is own dwelling with council tax, separate utilities. This suits us as we can either rent out, AirBnB or have parents/sons live there.
This property is cheaper than the house we're selling, but we still need a small mortgage looks like no lender is interested (may be able to remortgage another property but will still be tight).
This explains why it's much cheaper than other houses in the area. I have reservations that we could have problems selling it in the future, but could return it to a single dwelling I guess.
Does anyone have experience of purchasing a similar property or are there alarm bells ringing that I should be aware of?
Thanks

Albermarle

 looks like no lender is interested

Have they explained what their concern is ?

The_Famous_Flame

Albermarle said:

 looks like no lender is interested

Have they explained what their concern is ?

Hiya! Seems to be the 2 dwellings on same same title. I've spoken to current mortgage provider - Santander - that say they wouldn't port my mortgage over, and have gone through a mortgage broker who has said none other he has spoken to will take it up. I suspect they think I will be letting it out which is a residential & BTL scenario.
I have an appointment to discuss a bridging loan but purely to understand what that entails. I'm sure it's a no-go.
I think I can restructure a BTL mortgage I have with £100k equity which is last resort really.
If we own house outright, we can let or airbnb without any mortgage restrictions. I just need to win £50k somehow 

lincroft1710

Quite normal, as often in such cases there is a planning condition that the subsidiary dwelling cannot be sold separately from the main dwelling. Hence no separate title. 


Cannot see that this would cause a lender to refuse a mortgage, it may be that the amount you require is too low for them to be interested. Talk to a mortgage broker.

SDLT_Geek

The_Famous_Flame said:

Dear Forumites,
OH and I have found ideal home to buy. In area we want, multiple bedrooms for growing kids/adults to live with us for many years. Problem is the lower ground has been converted to a purpose built flat which is own dwelling with council tax, separate utilities. This suits us as we can either rent out, AirBnB or have parents/sons live there.
This property is cheaper than the house we're selling, but we still need a small mortgage looks like no lender is interested (may be able to remortgage another property but will still be tight).
This explains why it's much cheaper than other houses in the area. I have reservations that we could have problems selling it in the future, but could return it to a single dwelling I guess.
Does anyone have experience of purchasing a similar property or are there alarm bells ringing that I should be aware of?
Thanks

Buying two dwellings in one purchase can give problems with stamp taxes.  If you are buying in England, then buying two dwellings in one transaction often means the 5% extra for additional dwellings is due. 

There can be an exception if the more valuable dwelling, which you are to live in, is worth 2/3 or more of the total.

The_Famous_Flame

lincroft1710 said:

Quite normal, as often in such cases there is a planning condition that the subsidiary dwelling cannot be sold separately from the main dwelling. Hence no separate title. 


Cannot see that this would cause a lender to refuse a mortgage, it may be that the amount you require is too low for them to be interested. Talk to a mortgage broker.

Thanks lincroft. Mortgage broker was no help. I've asked for between £70k - £100k which is pretty substantial. I'll ask broker for more clarity than 'As there’s a self contained flat with it’s own address, under the same title, it’s likely going to need to be a bridging finance or cash purchase.' 

The_Famous_Flame

SDLT_Geek said:

The_Famous_Flame said:

Dear Forumites,
OH and I have found ideal home to buy. In area we want, multiple bedrooms for growing kids/adults to live with us for many years. Problem is the lower ground has been converted to a purpose built flat which is own dwelling with council tax, separate utilities. This suits us as we can either rent out, AirBnB or have parents/sons live there.
This property is cheaper than the house we're selling, but we still need a small mortgage looks like no lender is interested (may be able to remortgage another property but will still be tight).
This explains why it's much cheaper than other houses in the area. I have reservations that we could have problems selling it in the future, but could return it to a single dwelling I guess.
Does anyone have experience of purchasing a similar property or are there alarm bells ringing that I should be aware of?
Thanks

Buying two dwellings in one purchase can give problems with stamp taxes.  If you are buying in England, then buying two dwellings in one transaction often means the 5% extra for additional dwellings is due. 

There can be an exception if the more valuable dwelling, which you are to live in, is worth 2/3 or more of the total.

Thanks SDLT - I'm not sure of difference in values. Will see what the tax folk say 

The_Famous_Flame

Update folks! Seems have found a lender, just wasn't a high street bank. Many thanks for the help!