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lewiss

One property split into flats

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Hi, any insights would be much appreciated on the following:

I am looking to buy a property which is being sold as 2 flats (a 2 story house has been split over 2 floors) each with it's own private entrance - according to the details I would be buying the freehold and own the whole property I could either keep it as flats or turn it back into one house.

1. Would I be able to get a residential mortgage on the property?

2. Would I be able to keep it as flats, have one flat as my primary residence and rent out the other one? All whilst staying on the resi mortgage?

3. If I wanted to sell each of the flats individually at a later date would I need to convert them to leasehold?

Thanks in advance 

Lewis

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On 8/31/2019 at 10:08 AM, lewiss said:

. Would I be able to get a residential mortgage on the property?

You wouldn't be able to get a residential mortgage (as in a property to live in) without first renovating it back to a standard house.

You can get Buy-to-Let Mortgage, though you need a special mortgage called a MUB BTL Mortgage (Multi Unit Block Buy-to-Let Mortgage). Though you wouldn't be able to live in the property yourself but rent out the two units.

On 8/31/2019 at 10:08 AM, lewiss said:

2. Would I be able to keep it as flats, have one flat as my primary residence and rent out the other one? All whilst staying on the resi mortgage?

Not the way you describe. There is a way to to do it, as in buy the freehold and then create two leasehold units. You can then get two mortgages a Residential and a BTL on each of the units. It's a little more complicated than what I describe, but that is the basic premise.

On 8/31/2019 at 10:08 AM, lewiss said:

3. If I wanted to sell each of the flats individually at a later date would I need to convert them to leasehold?

Individually? Yes.

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