Mortgage help, what do they search?
Discussion
I want to get a mortgage on a property, but would like to know if mortgage company do checks on planning permission. Its a long story, but when i have told them it has plannig for 2 flats they want to put me on a comercial mortgage which needs a huge deposit that i dont have.
A few mortgage companies have just said to mortgage it as a basic residentual property for myself and then start work after its gone through, just get a mortgage with no tie ins.
What i dodnt want to do is go through it all only to have the mortgage turned down if they find out it already has planning granted.
A few mortgage companies have just said to mortgage it as a basic residentual property for myself and then start work after its gone through, just get a mortgage with no tie ins.
What i dodnt want to do is go through it all only to have the mortgage turned down if they find out it already has planning granted.
The solicitor acting on behalf of the mortgage provider will make sure that all securities. The solicitor will then inform them of any planning permision that is likely to affect the property and its value.
So if it has planning permision for 2 flats then the mortgage company will find out whoever you go to as it is a material fact. This will interest them more as it directly relates to the property and the security of there money.
So if it has planning permision for 2 flats then the mortgage company will find out whoever you go to as it is a material fact. This will interest them more as it directly relates to the property and the security of there money.
s1oww said:
I want to get a mortgage on a property, but would like to know if mortgage company do checks on planning permission. Its a long story, but when i have told them it has plannig for 2 flats they want to put me on a comercial mortgage which needs a huge deposit that i dont have.
A few mortgage companies have just said to mortgage it as a basic residentual property for myself and then start work after its gone through, just get a mortgage with no tie ins.
What i dodnt want to do is go through it all only to have the mortgage turned down if they find out it already has planning granted.
A few mortgage companies have just said to mortgage it as a basic residentual property for myself and then start work after its gone through, just get a mortgage with no tie ins.
What i dodnt want to do is go through it all only to have the mortgage turned down if they find out it already has planning granted.
very unlikely to find out about the planning permission in reality as unless the property is worth a significant amount (500k+) the lenders solicitors will not be thorough, although if there are any signs of separate buildings such as separate sinks/kitchens/bathrooms you will most likely be screwed with any high street and most specialist lenders...unless you can be at the inspection with the surveyor and grease his palm... igroup would be the way to go in these circumstances probably, but they won't probably go for more than 60%ltv.
Edited by minimax on Thursday 26th April 12:59
minimax said:
s1oww said:
I want to get a mortgage on a property, but would like to know if mortgage company do checks on planning permission. Its a long story, but when i have told them it has plannig for 2 flats they want to put me on a comercial mortgage which needs a huge deposit that i dont have.
A few mortgage companies have just said to mortgage it as a basic residentual property for myself and then start work after its gone through, just get a mortgage with no tie ins.
What i dodnt want to do is go through it all only to have the mortgage turned down if they find out it already has planning granted.
A few mortgage companies have just said to mortgage it as a basic residentual property for myself and then start work after its gone through, just get a mortgage with no tie ins.
What i dodnt want to do is go through it all only to have the mortgage turned down if they find out it already has planning granted.
very unlikely to find out about the planning permission in reality as unless the property is worth a significant amount (500k+) the lenders solicitors will not be thorough, although if there are any signs of separate buildings such as separate sinks/kitchens/bathrooms you will most likely be screwed with any high street and most specialist lenders...unless you can be at the inspection with the surveyor and grease his palm... igroup would be the way to go in these circumstances probably, but they won't probably go for more than 60%ltv.
Edited by minimax on Thursday 26th April 12:59
It forms part of the searches that are undertaken by the solicitors. Unless you are going for a straight remortgage!
There is no signs of it being split at all, other than there is no internal staircaes. This is only there because the house was used as a shop up until 2003 and they took out the stair case and didnt ue upstairs. Downstairs is own open space with a wc, sink and shower in one small room and a kitchen sink in another tiny room. It is carpeted with plastered wall, it has power and water too. Upstairs is just an open space as it hasnt been used since the 1950's.
I cant afford a £40k deposit and the property is below £200k.
I will be there when it is surveyed and valued, I used to be an estate agent and have said things a lot worse than this are livable.
I need a mortgage on it asap so i can start work on it, any recomend any companies?
Thanks for all your advice so far
I cant afford a £40k deposit and the property is below £200k.
I will be there when it is surveyed and valued, I used to be an estate agent and have said things a lot worse than this are livable.
I need a mortgage on it asap so i can start work on it, any recomend any companies?
Thanks for all your advice so far

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