• Mortgage For 2 Properties On One Title Deed

    By Guest on 21st Feb 2017

    I OWN A TERRACED PROPERTY WHICH IS A 3 BED HOUSE AND A 1 BED FLAT. THEY ARE ON COMPLETELY SEPERATE UTILITIES AND BUILDING REGS AND PLANNING ARE IN PLACE.I AM LOOKING AT SPLITTING THE PROPERTIES ONTO 2 DEEDS WITH A FREEHOLD AND LEASEHOLD AS I AM STRUGGLING TO FIND A MORTGAGE LENDER WHO WILL LEND AND WITH A COMPETITIVE RATE. IF I SPIT THE PROPERTY IS THERE ANY TIME LIMIT BEFORE I CAN APPLY FOR A BTL MORTGAGE AS THIS WILL GREATLY REDUCE MY MONTHLY PAYMENT.I HAVE BEEN TOLD BY A MORTGAGE ADVISOR THAT IF I SPLIT THE DEEDS I CANNOT APPLY OR LENDERS WILL NOT LEND UNTIL 6 MONTHS HAVE PASSED. I ONLY NEED TO BORROW ON ONE PREPERTY ONCE SPLIT.

  • 2 Answers

    By Guest on 23/02/2017

    I think possible your mortgage advisor is a little confused. As a general rule you have to have owned a property for at least 6 months before you can get a mortgage on it and since the law doesn't allow you to grant a lease to yourself, for the flat you would have to grant a lease to someone else and then have them transfer the lease to you. This means it would appear that you hadn't owned the flat for 6 months and some lenders would not lend. This would not however prevent you from mortgaging the freehold house as this would stay in your name and just become subject to the new lease of the flat

  • By Guest on 24/02/2017

    Thank you for the advice. I will instruct my solicitor in that case and find a new mortgage company.

  • Post Your Answer


  • Do you want to be informed of further comments / replies? Yes No

Ask a Question

Search