How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Aston Lawyer Your Own Question
Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10585
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
16368554
Type Your Law Question Here...
Aston Lawyer is online now

Hello My wife and I are interested in purchasing the freehold

Resolved Question:

Hello
My wife and I are interested in purchasing the freehold of a property in Northleach which is currently divided into two flats.
We will require our current mortgage to transfer over to this new property but we have been advised that the two flats are both on one title.
Our current lenders (Leeds) will not lend on this arrangement and we are finding that no-one else will either.
Is there any way around this please?
Many thanks for your help.
Kind regards
Ken Fowler
Submitted: 3 years ago.
Category: Law
Expert:  Aston Lawyer replied 3 years ago.
Hello and thanks for using Just Answer.

My name is XXXXX XXXXX am happy to assist you with your enquiry.

Just so I am clear, is anyone presently living in either of the 2 Flats?

Are you saying there is just the one Title Number, being the Freehold of the building, and that no Leases have been granted in respect of either of the Flats?

Finally, what were you intending on doing if the purchase went ahead? ie would you be converting the 2 flats into one for example?

I look forward to hearing from you.

Kind Regards
AL
Customer: replied 3 years ago.

Hello Al


Both flats are unoccupied.


I believe the situation is that that there is one title number being the freehold of the building.


Also as I understand it no leases have been granted in respect of either flat.


We would intend to convert the two flats into one house.


I hope this helps.


Kind regards


Ken

Expert:  Aston Lawyer replied 3 years ago.

Hi Ken,

Thanks for your reply.

It may sound crazy, but as it stands, you won't be able to get a residential Mortgage for this property.

Any Valuation carried out by the Bank would confirm its current status as 2 Flats, and as such the Bank would not lend because under the Council of Mortgage Lenders Rules, a residential Mortgage would only be granted if the Bank's Security was registered against the Freehold of the Building and the Leases pertaining to each Flat.
As neither Flat has a Lease, the Bank would not lend.

Further more, as you intend to convert the property into 1 house, even if the Seller were to grant 2 Leases pertaining to each Flat, this wouldn't satisfy the Bank/B Society, because as soon as you convert, the Leases would need to be determined.

Unfortunately, the Bank/B Soc value properties in their existing state, and even if you explain what your intentions are, they are not going to lend unless/until the conversion has been completed and it "becomes a Freehold house".

I am sorry this is not the answer you were looking for, but sets out the legal position.

Kind Regards
AL
Customer: replied 3 years ago.

Thank you Al


The estate agent has suggested a possible way to overcome this is to knock a door through from one flat to the other, now, thus making the property one. This would be through a supporting wall and would need an RSJ, so not a small job. It would however need to be done anyway to convert the property into one.


They are suggesting that a prospective purchaser might do this to overcome the problem.


Kind regards


Ken


 


 

Customer: replied 3 years ago.

Sorry Al


I meant to say do you think that knocking a door though to make it one property would overcome the problem of mortgage finance?


Kind regards


Ken

Expert:  Aston Lawyer replied 3 years ago.

Hi Ken,

Sorry for the delay.

Well, if the building could be converted so that it became one dwelling (ie by knocking through the wall), this certainly would overcome the problem. Whether the Seller is prepared to carry out the necessary work, you would have to see, but if the Agent has suggested it, it is worth pursuing.

Good Luck.

AL
Aston Lawyer and other Law Specialists are ready to help you