Can I mortgage property split into two flats?

[Cem]

Hello all,

Your opinions/advice/guidance would be appreciated on the below deal. Summary as follows:

-Buy to let mortgage required
- Property value= 174k rent = 1250 pcm LTV required = 85%
- 3 bed massionate annex above commercial grocery store
- 80 yr lease (+/- 2yrs)
- Rear entrance with steel staircase
- Property does have two kitchens as it has been split into a 1bed flat unit downstairs and a 2 bed flat upstairs
- Shops next to the grocery store below are a bank and grocery store. Closest restaurants are the 4th and 5th shop on each side.

So:

*Would a Lender lend on this if 1 kitchen is removed & property is made to look like 1 unit ?

*Any other creative way to make a lender lend on this? (apprently steel stairscasing is a big no! :-s) ?

*Can you share any experiences if you have every done a similar deal?

Many Thanks

[Kathryn]

Your chances of 85%LTV are about zero at present no matter what you do to it.

[ram]

- 80 yr lease (+/- 2yrs)

Somewhere on these posts, you are recommended to increase the lease if it is about to fall below 80 years, so get advice on this, before you buy ( BEFORE )

[jeffrey]

Yes, although P cannot force L to extend (until P has owned flat for at least two years).
Solution:
1. P demands that V serves Notice of Claim [s.42 of 1993 Act] on L.
2. On exchanging contracts with P, V contracts to assign notice's benefit.
3. On completion, V assigns it.
4. P can thereupon immediately step into V's shoes and press ahead with statutory extension (adding 90yrs. to lease term, AND reducing ground rent to a peppercorn).
5. On completing Extension Deed, P also completes a Deed of Substituted Security (shifting mortgage from old lease onto newly-extended lease).

Only problem: if P cannot persuade mortgagee to accept unextended lease as security. In that case, P must make V complete the extension at same time as V's sale to P. V could even use P's purchase money to finance it.

[Cem]

Somewhere on these posts, you are recommended to increase the lease if it is about to fall below 80 years, so get advice on this, before you buy ( BEFORE )

Yes agreed - This is one thing I am waiting for.

Kathryn - agreed that it is difficult at the moment but thats where I am hoping to get some advice on this. Would commercial mortgage be possible on this ?

Thank you

[davecook]

hi
this can be done with mortgage express on 1 title or you can split title inb 2 & do it with bm


Hello all,

Your opinions/advice/guidance would be appreciated on the below deal. Summary as follows:

-Buy to let mortgage required
- Property value= 174k rent = 1250 pcm LTV required = 85%
- 3 bed massionate annex above commercial grocery store
- 80 yr lease (+/- 2yrs)
- Rear entrance with steel staircase
- Property does have two kitchens as it has been split into a 1bed flat unit downstairs and a 2 bed flat upstairs
- Shops next to the grocery store below are a bank and grocery store. Closest restaurants are the 4th and 5th shop on each side.

So:

*Would a Lender lend on this if 1 kitchen is removed & property is made to look like 1 unit ?

*Any other creative way to make a lender lend on this? (apprently steel stairscasing is a big no! :-s) ?

*Can you share any experiences if you have every done a similar deal?

Many Thanks