Jump to content

Advice on joining 2 flats together: mortgage


Ellie78

Recommended Posts

We are hoping to put 2 flats we own together and renovate to form c 1500sq feet family home.


The value of the property would be significantly higher than the purchase price both properties are mortgaged for


I have no clue as to how to deal with the mortgage aspect of the deal and have no idea how to start: we need to go from 2 mortgages to 1, and borrow more money to fund the renovation (c. 70,000).


Mortgage brokers I've spoken to seem to have no clue or experience in this relatively complex operation and I have no idea who to talk to.


Anyone done this and can offer advice as to mortgage issues?

I don't think you legally can join two properties with two mortgages. We have to reduce it to one mortgage (ie pay off the smaller - 60k- one) to integrate them. The issue is more how the legalities have to be dealt with in order to get a mortgage, and how the new value is reflected. It looks to me like we would have to get a bridging loan to do the renovation and physically put them together- otherwise how is a new lender - one looking for the first time at this new more valuable property going to be able to value it.



I could really do with chatting to someone with experience but brokers have been clueless about the mechanics from the mortgage point of view.


It's going to cost us c. 130k to pay off mortgage and renovate (which includes small extension of basement). But it will give us same floor space as house, which we couldn't afford by any stretch of the imagination ...

It can be done - my neighbours did it. From what I remember, they were able to remortgage once the work was done and the council had reclassified it as a single dwelling. It was a pain though and they used a specialist broker. I can ask them who it was and PM you?
Aren't the only liens that the mortgagees currently have solely on the flat leaseholds that you're planning to demolish and abolish? I don't think they'd like that. My inexpert guess is that both of those mortgages would have to be cleared, and replaced by one to one or both of you as redeveloping freeholder. The new lender would presumably need to be satisfied that any loan could be recovered, even factoring in whatever probability there was of the approved redevelopment not being properly completed. I'd be talking to a lawyer first, as a one-stop advice centre on both correct legal process and the practicalities. They'll presumably have seen plenty of cases of purchase for redevelopment; may even be able to recommend particular lenders, brokers, or valuers.

ianr, yeah I'm sure a lender wouldn't be happy about effectively abloshing their collateral! When we were looking at it, it seemed like the way to go was to pay off one of the mortgages, then on the mortgaged property you will need a deed of substituted security - i.e. substituting the flat for the whole house on the mortgage agreement. This is a fairly common procedure.


Also, bear in mind that things like switching utilities to a single meter are surprisingly complicated. And of course you'll need to own the freehold first.

Archived

This topic is now archived and is closed to further replies.

  • Latest Discussions

    • So top of Lane. Local Sainsbury, middle Co Op and M and S and bottom Tesco Express…..now everyone should be happy except those that want a Waitrose as well…0h and  don’t forget M and S near ED Station….
    • Direct link to joint statement : https://thehaguegroup.org/meetings-bogota-en/?link_id=2&can_id=2d0a0048aad3d4915e3e761ac87ffe47&source=email-pi-briefing-no-26-the-bogota-breakthrough&email_referrer=email_2819587&email_subject=pi-briefing-no-26-the-bogot_-breakthrough&&   No. 26 | The Bogotá Breakthrough “The era of impunity is over.” That was the message from Bogotá, Colombia, where governments from across the Global South and beyond took the most ambitious coordinated action since Israel’s genocidal assault on Gaza began 21 months ago. Convened by The Hague Group and co-chaired by the governments of Colombia and South Africa, the Emergency Conference on Palestine brought together 30 states for two days of intensive deliberation — and emerged with a concrete, coordinated six-point plan to restrain Israel’s war machine and uphold international law. States took up the call from their host, Colombian President and Progressive International Council Member Gustavo Petro, who had urged them to be “protagonists together.” Twelve governments signed onto the measures immediately. The rest now have a deadline: 20 September 2025, on the eve of the United Nations General Assembly. The unprecedented six measures commit states to:     Prevent military and dual use exports to Israel.     Refuse Israeli weapons transfers at their ports.     Prevent vessels carrying weapons to Israel under their national flags.     Review all public contracts to prevent public institutions and funds from supporting Israel’s illegal occupation.     Pursue justice for international crimes.     Support universal jurisdiction to hold perpetrators accountable. “We came to Bogotá to make history — and we did,” said Colombian President Gustavo Petro. “Together, we have begun the work of ending the era of impunity. These measures show that we will no longer allow international law to be treated as optional, or Palestinian life as disposable.” The measures are not symbolic. They are grounded in binding obligations under international law — including the International Court of Justice’s July 2024 advisory opinion declaring Israel’s occupation unlawful, and September 2024’s UN General Assembly Resolution ES-10/24, which gave states a 12-month deadline to act. UN Special Rapporteur on the situation of human rights in the occupied Palestinian territory Francesca Albanese called them “a momentous step forward.” “The Hague Group was born to advance international law in an era of impunity,” said South Africa’s Foreign Minister, Ronald Lamola. “The measures adopted in Bogotá show that we are serious — and that coordinated state action is possible.” The response from Washington was swift — and revealing. In a threatening statement to journalists, a US State Department spokesperson accused The Hague Group of “seeking to isolate Israel” and warned that the US would “aggressively defend our interests, our military, and our allies, including Israel, from such coordinated legal and diplomatic” actions. But instead of deterring action, the threats have only clarified the stakes. In Bogotá, states did not flinch. They acted — and they invite the world to join them. The deadline for further states to take up the measures is now two months away. And with it, the pressure is mounting for governments across the world — from Brazil to Ireland, Chile to Spain — to match words with action. As Albanese said, “the clock is now ticking for states — from Europe to the Arab world and beyond — to join them.” This is not a moment to observe. It is a moment to act. Share the Joint Statement from Bogotá and popularise the six measures. Write to your elected representative and your government and demand they sign on before 20 September. History was made in Bogotá. Now, it’s up to all of us to ensure it becomes reality, that Palestinian life is not disposable and international law is not optional. The era of impunity is coming to an end. Palestine is not alone. In solidarity, The Progressive International Secretariat  
    • Most countries charge for entry to museums and galleries, often a different rate for locals (tax payers) and foreign nationals. The National Gallery could do this, also places like the Museums in South Kensington, the British Library and other tax-funded institutions. Many cities abroad add a tourist tax to hotel bills. It means tourists help pay for public services.
Home
Events
Sign In

Sign In



Or sign in with one of these services

Search
×
    Search In
×
×
  • Create New...