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Mortgage Issue with Splitting Title

chapel Offline Mute
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28-11-2013,10:42 PM
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Mortgage Issue with Splitting Title

Hi all,

I'm currently going through planning for a change of use to turn my house into two individual dwellings. Currently it's one house on one title and worth £275k. After development it'll be two house on two titles and each will be worth £175k. I have a mortgage with £170k left to pay.

I spoke to the bank today and they said i would either need to redeem my mortgage at the time of the title splitting, or remortgage.

My problem is that i no longer have a job so I won't be able to remortgage. My other problem is that I don't have the £175k I would need to redeem my mortgage.

How can I proceed!

Thanks Paul
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ian2128038772 Offline Mute
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29-11-2013,12:22 AM
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RE: Mortgage Issue with Splitting Title

Do you need to split your title?

Could you put one up for sale, and split the title at the same time as completing the sale?

Would the bank let you let both out without splitting the title? Or let one out and live in the other.
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chapel Offline Mute
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30-11-2013,06:18 PM
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RE: Mortgage Issue with Splitting Title

Hi,

I do need to sell them both within the next six months so I can move closer to the family. As I currently do not have a job i wouldn't be able to finance another property. I need cash in the bank to buy.

I could perhaps sell one first and use the 'transfer of part' from the land registry to split the title - this would give the bank their money back when the title is split as they want. I think this may have a cgt implication for me though.

Ideally I'd have both titles and then switch between both to benefit from PPR

Do any lenders lend if you haven't got a salary? Maybe a short term bridge to pay off the bank and give me both titles

Best, Paul
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