Property not registered with HM Land Registry after 16 months?
3 years ago | 13 comments
Built a new house – now struggling between splitting title and remortgaging?
9:55 AM, 22nd February 2023, 3 years ago
6
Hello to everyone, I’m new here and pretty fresh in the property world as well.
I own a 3 bed semi with a pretty uncomfortable mortgage as my residential house. This had plenty of room in the back garden and planning approved, so I have built a new 3 bed detached house there.
Now I’m struggling with the splitting of the property in two titles, thus remortgaging the old house into a ‘let-to-buy’ mortgage and raising some finance on the new build through a residential mortgage.
I still owe just over 200k on the original mortgage, which is due to reach the end of the fixed rate period very soon. My lender does not approve of title splitting/dividing the property. The new build house doesn’t have any finance outstanding. I would like to raise £160,000 on the new build and use part of the capital to reduce the mortgage on the old house to £150,000.
My understanding was that the 3 procedures (mortgage; remortgage & splitting) can be achieved all at the same time with perfect timing, so that no bridging loans are required.
But now having started the process, the Solicitors are wanting my mortgage offers to proceed and in turn, the brokers want my title split, in order to arrange individual mortgages.
Plus the issue of the 6 months owning rule has also jumped into the equation, meaning that for most lenders, I have to own the new property at least half a year before they would join in with a mortgage.
My main issues are:
1) How do I best juggle this situation towards having the two properties registered and mortgaged as soon as possible?
2) Are there any particular lenders recommend for my situation, not least with convenient rates or anything closer to the 2022 rates, as the current 5ish% rates are quite unbearable.
ANY advice is welcome.
Thank you in advance!
Peter
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Member Since April 2017 - Comments: 13
10:44 AM, 22nd February 2023, About 3 years ago
It’s a complicated area one which solicitors can struggle with. I would consult specialists such as http://www.titlesplit.com, Harriet Dunn and Rachel Knight Hope you find someone to help.
Member Since February 2023 - Comments: 3
11:34 AM, 22nd February 2023, About 3 years ago
I went down the bridge loan route as I was selling one.
It’s expensive, as I had to pay both sides legals, valuation, arrangement fees & min 3 months interest.
One point, I had to get a new build warranty otherwise the mortgage co.s wouldn’t touch it. Doing this after the build was a challenge as I only used the architect at the design phase (they didn’t oversee the build)
Member Since January 2015 - Comments: 27
2:18 PM, 22nd February 2023, About 3 years ago
Hi
I did this in the 1980s
It was fairly simple.
I applied to my mortgage lender Birmingham Midshires
They agreed for a fee
I applied to land registry with plans sizes etc.
Fenced off the boundary
Built a house
Took 2 years in total with the help of a lawyer
Good luck.
Member Since March 2016 - Comments: 85
7:49 AM, 25th February 2023, About 3 years ago
The right solicitor and mortgage broker should be able to coordinate to create the new leases and draw down the money on the same day.
Try and use a solicitor for the title split that is both experienced in this area and also on the legal panel of your mortgage lender so they can do all the work.
However you will need a lender that will lend on a lease under 6 months old and that will limit your options. Try State Bank of India (many brokers have never dealt with them so try and find one that has).
However I fear if you are hoping for a sub 4% rates you need to be realistic that is highly unlikely in the current climate. And as another poster mentioned you may need a warranty on the new build. Good luck.
Member Since January 2022 - Comments: 267
1:06 PM, 25th February 2023, About 3 years ago
Reply to the comment left by Indiajane at 22/02/2023 – 10:44
hi Peter i have listened to the TITLE SPLIT team on several webinars, and spoken to several people who have attended their 3 day training course.
i believe they might be able to help/advise you of a way forwards. i am planning to attend this course soon, but that’s not going to help you in the short term.
whereabouts are the properties? happy to speak to you directly via email:
[email protected]
Member Since April 2024 - Comments: 1
3:51 PM, 29th April 2024, About 2 years ago
Hi Peter
I came across your question whilst scouring the internet for help as I find myself in almost a like for like situation as you were in last year – keen to see if you have an update and can share any wisdom of how you resolved this?
Thanks so much in advance if you do see this and can spare a moment to reply!
Thanks,
Sophie