General (main property discussion here) - What is the best MoRtGaGe for "house to convert to flats"

Hello

I am looking at purchasing a house and then convert it into two flats. A one bedroom flat and a two bedroom flat. My question is what the best type of mortgage?

Jasprit, you want a no ties mortgage my friend, ok. Reason been you are going to buy the house and then convert to 2 flats. After you have completed all the works you will then look to refinance the entire lot. I.E 2 sets of deeds = 2 mortgages.

If you want to do this as an upfront project i.e. you tell the lender that your going to convert then you want a commercial deal mate which is a lot more expensive. If you have no intensions of selling then why not just go with a 5 year fixed and just split the flats. After the 5 years you can then split the deeds and refinance.

Hard question to answer as i dont know what type of person you are.

Currently the house is semi converted into two flats. Semi meaning bad job half done but the important features are there. Two gas and electric meters. Two kitchens and bathrooms. The work is very bad and it is badly planned.

I have considered going for a fix and then just updating the property as I go along but then again I think about getting the property empty and then starting the work. So therefore I will need a mortgage that has no tie in. The property has been like this for about ten years and the current landlord has paying council tax for both flats. I presume there will no problem with planning but who sort out the deeds and lease will that be the Solicitor?

you may not need planing as its established, however please make a descreet enquiry to the council.

Solicitor will sort out ur deeds, however if it were me, i'd try to mortgage the lot on one deed, unless your thinking of seling then you will need to split deeds, top flat leashold. bottom can be freehold.

A tip for you, make sure you correctly split all the utility's as this will be better in the long run. i paid £850 for new electricity supply and £400 for new gas connection. If you need help then please feel free to call me...

Alex M www.oakhillmortgages.co.uk