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Apologies if this topic has already been dealt with, I wasn't able to find much on it. Hence I dare to ask what are the options for a property on residential mirtgage which I would like to convert into flats. The property is too big for my family the houses around it have been converted into flats as well. Would I need to remortgage with a different product before I can concommea ny conversion work and seek planning, or would the residential lender consent to conversion (two flats) ? Will appreciate a hint or two in the direction I should follow.
I think it is unlikely a lender will accept such a significant change in their security. However there is no harm calling them and asking (but I'd be stunned if they accept this unless you are already with the one of the real specialist lenders or have another banking relation to lean on).
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)
there is not a chance that a residential lender would agree to this. You would need Development Finance to do this, also known as Bridging. This would take the place of any existing residential finance; you might also need to raise extra funds this way too to complete the work. Incidentally, you will also need to obtain the relevant planning permission first though.
Once you have completed the split into three flats, you could redeem the bridging finance with BTL mortgages (I assume that you would want to split the titles, so that each flat has their own title?).
If you would like to chat over the options with some indicative rates, we would be happy to do so. Call me on 07751 042485.
BTL's, residential mortgages, bridging, life cover and estate planning
For Commercial Finance, complex BTL and HMO funding, development finance, international and expat mortgages, and portfolio BTL mortgage services Assured Funding website.
Telephone: 07751042485 01206 654444
Hmm,thanks guys for your input at this point I am ready to challenge the dogma that HMO is more management intensive than flats, certainly in the case of a big house conversion. Where If I converted to flats I would need to have 4 to 5 sets of kitchenettes and shower rooms, for studios, 4 to 5 sets of utility meters and supplies this presents 5 times potential issues in the infrastructure and not to mention the capital spent, whereas for an HMO most of the work is superficial and safety related and there is just one set of utilities to deal with, HMO mortgages are readily available I'd be better off with an HMO from a cost as well as future management and lending product related prospective.