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Remus2004, Barrister
Category: Property Law
Satisfied Customers: 71159
Experience:  Over 5 years in practice.
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I bought a buy-to-let property in August 2011 and took a mortgage

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I bought a buy-to-let property in August 2011 and took a mortgage on a single dwelling. However, the property was converted into two units and rented out. To rectify this, I want to split the title deeds into two and register each flat as a single leasehold unit. I understand I would need to speak to the existing mortgage company about this and seek their permission? In order to do this, will I land into trouble as I signed a legal document stating that I wasn't going to split the property into two?
Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

Why don't you just remortgage with another lender based upon two properties?
Customer: replied 3 years ago.

Hi Jo,


I'm sorry I never got an email notification that you have replied, hence the late response.


I will ask my mortgage broker if he can assist me in this, and if I've further queries I'll contact you, many thanks.


No problem.

You need to be extremely careful with this.

You are in breach of your mortgage conditions and the lender is at liberty in many cases if there is a breach of mortgage conditions to appoint a receiver to administer the property for you. Once a receiver is appointed you have very little chance of ever getting the property back.

Usually it's only applies to mortgage arrears and defaults but that would depend on your mortgage conditions in depth.

If you want to guarantee that this does not cause a problem, you need to move lenders because there is no way of broaching this with the existing lender without admitting to what you have done.

I'm sorry if this is bad news

Can I clarify anything for you?

Customer: replied 3 years ago.

Hi Jo,


No, you're extremely clear, and thank very much for advising me. I've in the meantime contacted my broker who apparently has got a Lender who will give me a mortgage on the property, as it is. The broker will speak to this Lender today/tomorrow and let them know my intentions of having two titles in the future, and he will let me know if they are ok with it.


The property was bought for £200k and I've had it valued as two separate units last month. Each unit can be sold for £150-£165K . I've sent a letter confirming this to the broker who will speak to the Lender. At present I owe the existing lender £160K.

There is no problem in getting a lender to do this for you. The problem is your existing lender!

The last thing you want is them to foreclose on the mortgage purely because you have reached the mortgage conditions particularly of the property is going to be worth even more
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Customer: replied 3 years ago.

Thanks Jo,


That's what the broker has advised. He wants to move lenders first.

If you have two people giving you the same advice, that will generally be the right advice.