Featured, Mortgage Guide
Client details: The clients were individuals with no direct development experience who found a freehold end terraced property in an ideal location that they wished to purchase. However, the house was currently arranged as two flats and their ideal plan was to convert this back to a single dwelling.
Property Details: The property was a residential terraced house over 2 floors which had been converted into two separate self-contained flats on one freehold title. The property was on the market to be sold on this basis and had no planning in place to allow for conversion to a single home.
Reason for finance: As the property was arranged as two flats the purchase of both flats and the freehold was needed. The intention was to convert the property back into a single house for the client’s own use as a main residence, with the lender’s knowledge from the outset.
Challenges faced: Whilst the property was likely to have been a single house in the past, there was no planning permission in place to convert the two flats back into a single home nor was it known if this would be granted or how long this process could take.
Solution: Tandem Bank was approached and agreed to lend without planning permission on standard residential rates without any early redemption penalties, which allowed the clients to complete the purchase.
It was further agreed that if planning was not granted, an element of the original mortgage would be converted to a buy to let mortgage, enabling the clients to reside in one flat and let the other.
A very pragmatic approach was taken by the bank which removed the potential need to take short term finance. This undoubtedly would have been more expensive and Tandem was also able to allow the client’s solicitor to act on the bank’s behalf for the transaction, saving further costs and time.
Broker: Peter Davies – email@example.com
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