Buying Multiple Properties
Answered on 13 February 2016 by Nick Morrey
I am planning to build a pair of semi detached houses on land I own. We will live in one house and either rent or sell the other, depending on market conditions. Can I get a self build mortgage to fund the overall development?
Potentially, the answer is 'yes', although this depends on a number of factors. These include your previous (if any) development experience, your personal incomes, the cost of the build and the cash that you are putting into the development.
You would need to show that planning permission has been granted, architect’s plans and a breakdown in build costs. Development finance isn't always the easiest to place, and the complexity often means it's better to have an experienced mortgage broker to position your case in the right way to the right lender.
Your other option would be to split the title of the plots, to do a self build on the property you intend to live in, and a development loan on the other. Once the second is built you could then either sell it or remortgage it onto a buy-to-let.
If you would like to discuss this in more detail then please contact one of our mortgage experts on 03304 332 927.
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We recommend you seek professional advice with regard to any of these topics where appropriate.