Residential mortgage with internal door locksMake Text Bigger
We think this might be a unique problem and want some advise please.
We went to view a house which was a Care Home 18 months ago. The Care Home has moved but the property is still owned by the Care charity. We really liked the house, made an offer and the offer has been accepted.
Onto the mortgage that has been underwritten by Santander who have instructed a valuation. Our current house is going to Let to Buy where we got a BTL mortgage (with Nat-West) underwritten and waiting for valuation.
The house we viewed is now let by an organization as multiple rooms to different tenants. All the rooms have locks on doors. The valuer thinks that this might be getting a residential mortgage but letting out rooms. However, that is NOT the case, we are going to live there … but the bank wont accept it). My financial adviser has called most lenders and they appear to have the same view and have said a residential mortgage request might be rejected.
The vendor is not willing to vacate tenants and remove locks for fear of losing money (nothing wrong with them, after all they are charity).
My Financial advisor said Halifax is OK with the locks on doors but repayment is £50 more than to Santander. Also we would have to pay another valuation fee of £500 and our worry is that the valuer might think and write the same as Santander’s (free of cost) valuer.
The property is designated as commercial property and the vendor’s solicitors are going to apply for change of use. However, this is not done yet and the bank views this as commercial property. This was not in the instruction by the Estate Agent and we thought it was a residential property, probably with HMO license.
Now the question of what we can do to proceed?
What are the steps we need to take to make that house our home?
I was thinking of having direct talks with bank (through financial adviser if needed) to get the conditional offer of mortgage provided we use the property solely for residential purposes, remove all the internal doors’ locks within one month of moving in and submitting the receipt of the locksmith who did the work (yes we are ready to spend that money).
Please help us with this strange situation.
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