Buying 4 flats to convert into single dwelling

[big ant]

Hit a road block on financing, as lenders won’t talk, until 6 months have elapsed after the date the multiple title deeds are merged into one :-(

Edwardian semi, currently 4 independent flats and titles, going to be culled and reversal back to a single dwelling.

Any clues how to get around this ?

Otherwise unmortgageable, and we have to front the cash for purchase & conversion.....but even then, wait for 6 months after the title deeds are ‘one’.

Wise words appreciated

BA

[anonymous-user]

I'm guessing it's at auction. These are usually picked up either by a cash buyer or by someone with broader access to finance.

[big ant]

Executor sale, advertised as separate flats, but we were looking for a new home....so buying all 4.

Now scrambling to get 75% mortgage, but mortgagees insist on 6 months ownership after we’ve merged titles into one.

[selmahoose]

Bridging (at a competitive rate)

[Sarnie]

No Residential lender will lend util the properties are fully converted into one residential property and you won't be able to even start an application until the titles have been merged for more than six months.......

[big ant]

Thank you all, just needed to know, no other option. Full speed ahead...

[anonymous-user]

With an executor sale you'll probably need to move along pretty smartly because any delay on property sale can delay the whole estate administration.

Two of the key reasons properties end up at auction are (i) unmortgageable, or (ii) estate sale. Both factors are in play at the same time for this property.

Good luck with the purchase.

[mikiec]

big ant said:

Executor sale, advertised as separate flats, but we were looking for a new home....so buying all 4.

Now scrambling to get 75% mortgage, but mortgagees insist on 6 months ownership after we’ve merged titles into one.

If there is no other interest could you do a settlement delayed until after conversion? Pay them the 25% now and balance on mortgage issuance?

[DonkeyApple]

big ant said:

Hit a road block on financing, as lenders won’t talk, until 6 months have elapsed after the date the multiple title deeds are merged into one :-(

Edwardian semi, currently 4 independent flats and titles, going to be culled and reversal back to a single dwelling.

Any clues how to get around this ?

Otherwise unmortgageable, and we have to front the cash for purchase & conversion.....but even then, wait for 6 months after the title deeds are ‘one’.

Wise words appreciated

BA

I guess the risk of the development stalling at the point that it is no longer 4 flats or reached the point of being one home is why residential loans aren’t appropriate.

Do local authorities have a say in the reversion also? That would be an additional risk. Do they have a policy of not generally permitting a loss of 4 affordable homes in their area etc?

[NickCQ]

This is why these types of opportunity get offered a what looks like an attractive discount.

[big ant]

Thanks all. There’s not a solution, but appreciate the collective observations. We’ll proceed, as lovely area, will revert to a glorious home again...cheers

[selmahoose]

Did you even try the bridgers or private lenders?