Two flats within a freehold property

Answered on 24 November 2018

I have had an offer accepted on a freehold property which is currently arranged as two self contained flats. The offer is £145,000 and I have a savings of £110,000. I am planning to live in the 1st/2nd floor maisonette and my daughter and her baby are going to live in the ground floor flat. I am not planning on renting the ground floor at any time. I am needing a £35,000 deposit but I am struggling because of the flats arrangement. Where would be the best place to start looking?

If you have not done so already, I would speak to your solicitor and find out whether or not the property has planning permission to be split into two flats and also how much it would cost to split the title and create two long leases on the flats within a separate freehold for the house.

Whilst it is potentially possible to find a lender willing to grant a mortgage as the property stands, you will have a lot more choice if you want to mortgage a standard leasehold flat.

Bridging Loan/Short Term Finance

You may find it necessary to obtain some short term bridging finance to enable you to purchase the property and then to remortgage once the title has been sorted out.

Strangely, it would actually be easier to arrange a mortgage if the property was going to let and neither you or your daughter were going to live in it.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0330 433 2927 and one of our consultants will be able to advise you on your situation.

Ask The Mortgage Experts answers are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them. We recommend you seek professional advice with regard to any of these topics where appropriate.