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Help Mortgage Confusion........

Okay, but of a odd situation.....basically buying a place with a residential mortgage over a 3 year discount period etc , but the place is big enough to be converted into 3 flats , which is what i want to do , me live upstairs , the other two flats paying the mortgage pretty much , very deposit for the deal, i will go for all suitable planning permisson etc , but the mortgage is residential , so after my 3 year deal is up i would intend to change the product to a more suitable one for my needs , i guess a buy to let deal , But i presume once it has been converted into 3 places.....will i need 3 mortgages etc ? or just one buy let for the whole place ? or would i need a commerical mortgage which seem to be much more expensive around 2% over base.... I know the residental mortgage company may not be happy about my intentions and could possibly ask for the full amount back etc due to change of use.....but maybe i'm wrong , i do hope someone could shine some light on this for me , as its starting to confuse me a tad......

Reply to
Inch High Private EYE
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If you were to take a mortgage out on a residential product and stay with the lender for the life of the loan, there would not know that the property has been converted into 3............

Reply to
Matt Robertson

They certainly would find out if they had been legally split into

3 different properties separately registered at the land registry.
Reply to
Ronald Raygun

It wouldnt get that far. They mortgagee would have to give permission and they wouldnt.

The OP could just do nothing and not change the titles.

Reply to
John Boyle

In message , Inch High Private EYE writes

What are 'your needs'?

Why?

Yes, and the titles will need to be split. If you leave it as one title in will become multiple occupancy and BTL lender dont like that.

No.

Yes.

How would they find out? The worst they would do is increase the interest rate.

Just get a tracker mortgage which has the same deal for the whole life of the mortgage. Then do the work and keep your mouth shut.

Reply to
John Boyle

Thank you for your feedback , what don't the BTL lenders not like about multiply occupancy ...........??

I can have my deal over 5 years tracker , but once that runs out , if it is a multiply occupancy , how could i remortgage with out telling the new lender (if i change lender due to a better deal etc)? the situation ?or would they not be that bothered? i presume a valuer has to come round and check the place out.......in 5 years time , i would own around 70% of the property..

Also if the property is converted into multipy occupancy , i guess it would make it difficult to sell the whole property to a regular seller , wanting to use the place in a similar fashion to myself......

Reply to
Inch High Private EYE

If someone were to split their property and retain full ownership, the land registry wouldn't know.

Reply to
Matt Robertson

In message , Inch High Private EYE writes

They like each living until to be a separate legal entity. Those with multiple tenants can be more difficult to sell on a vacant possession basis, also they tend to be of lower quality and more likely to become quickly 'run down', I am not saying you would allow that, but that is the lenders experience in that market as a whole.

Based on current ;lending criteria for the domestic mortgage and BTL market the valuer would spot it and you wouldnt get the mortrgage.

Thats right.

Reply to
John Boyle

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