9:55 AM, 22nd February 2023, About A year ago 5
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!