AK
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Registered: 5th Jul 00
Location: Aberdeen City
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anyone done this?
At the moment we live in a 2bed grd floor flat, with a double upper 5bed flat above us.
In the future we'd like to buy upstairs, and convert it into a 3 story house.
The 2bed grd floor flats are going for about 350k just now, and the double uppers about 450-500+.
The 3 story house accross the road (slightly narrower and would be smaller than our desired conversion) just sold for 850k or something.
One concern I have is the value of the property in the end. Anyone got any experience on doing this?
Mortgages.... how will they work in this situation? we'd need 2, then down to 1.
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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Firstly you need 2 mortgages...on the two properties....
I'm presuming both flats will be on long leaseholds? (You cant have flying freeholds)...its then a case of getting the correct planning consents and approvals...carrying the work out...then having the 2 leaseholds merged with the Land registry into one Leasehold...
Can mean you make a lot of money.....
I have never done it though...
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dannymccann
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Registered: 9th Aug 06
Location: Doddington, Lincolnshire
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My experience on this is only from those auction programs 
But they always turn say a 2 storey house into 2 flats as it always makes more money that way?
eg : Do the house up and sell as a house for £200k or split and do up both as separate residences and sell for £220k etc?
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Fee
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Registered: 16th Nov 05
Location: With AK
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I think we could get upstairs for less than £450k
I don't really know how the mortgage thing would work, but i assume that we'd get both mortgages with the same company who are aware of the planned modifications
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Russ
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Registered: 14th Mar 04
Location: Armchair
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yeah Fee, i would of thought if you spoke to your mortgage company about your plans, they would just alter your mortgage for the one property
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Kerry
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Registered: 5th Oct 01
Location: Norwich
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its not that simple as there will be seperate deeds
i dunno how you would go about getting the 2 merged into one but its at that point that you would then remortgage 2 mortgages into one.
complicated on paper but do-able
i know for example if someone bought a building with the plan to convert into flats while the property is on 1 deed it would be 1 mortgage however if each property is then to be sold it would have to be on its own deed. so its kind of the same in reverse!
(i know what i mean)
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a_j_mair
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Registered: 23rd Jan 04
Location: Scotland
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could be done deads etc wouldnt be a problem, would not be cost effective though
would cost more than its worth, specially in todays market
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AK
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Registered: 5th Jul 00
Location: Aberdeen City
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quote:
Originally posted by MarkM
Firstly you need 2 mortgages...on the two properties....
I'm presuming both flats will be on long leaseholds? (You cant have flying freeholds)...its then a case of getting the correct planning consents and approvals...carrying the work out...then having the 2 leaseholds merged with the Land registry into one Leasehold...
Can mean you make a lot of money.....
I have never done it though...
leasehold - no, we'd own it.
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Colin
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Registered: 4th Apr 02
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Always thought there was more money to be made from knocking 1 big house into multiples...not vice versa.
As for mortgages ive not got a clue, maybe get offered some sort of bridge loan until the main renovation works done & planning aprove it as 1 sole residance?
Just a complete guess though!?
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Fee
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Registered: 16th Nov 05
Location: With AK
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I don't think we would lose money, but I don't think we would make any
I think we're looking into it more as a long-term home more than anything.
I love the place that we are in at the moment, and the flat upstairs has the same original features, so it would make a nice home
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Colin
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Registered: 4th Apr 02
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Go for it then if your happy where you are ~ Whats the chances of upstairs selling tho....do they even want to sell or are you going to serve them an eviction notice? 
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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quote:
Originally posted by AK
quote:
Originally posted by MarkM
Firstly you need 2 mortgages...on the two properties....
I'm presuming both flats will be on long leaseholds? (You cant have flying freeholds)...its then a case of getting the correct planning consents and approvals...carrying the work out...then having the 2 leaseholds merged with the Land registry into one Leasehold...
Can mean you make a lot of money.....
I have never done it though...
leasehold - no, we'd own it.
The above flat will be a Leasehold flat as you can't have a flying freehold...or if it is Freehold then the title is defective in its current state.
You can't mortgage a flying freehold...as there is no binding legal relationship between the owner of the below property and the owner of the above property...best way I can describe it is the owner of the below property is under no obligation to keep his property from going into disrepair...if he allowed that to happen the above property would basically fall down...
A Leasehold title ensure obligations for such an event doesnt happen as the owner of the below property has to keep his property in a condition that means the above property doesnt fall down...
Thats how it works in England anyway...
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Fee
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Registered: 16th Nov 05
Location: With AK
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Scotland is different
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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quote:
Originally posted by Fee
Scotland is different
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Tom J
Organiser: South Wales
Premium Member
Registered: 8th Sep 03
Location: Bridgend
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i've got a flying freehold on my house as my stairs go over next doors house?
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Tom J
Organiser: South Wales
Premium Member
Registered: 8th Sep 03
Location: Bridgend
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sorry didnt realise this was an old thread, clicked on the related thread tab on the bottom 
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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I was living in London when I replied to this thread. Can't even remember typing it! Ha.
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