A remortgage on a property with 2 titles is by no means impossible, as one of my recent cases shows.
I was recently approached by a client who was having trouble finding a financing solution. He had spoken to several other brokers before coming to Enness but they had all turned him away, saying they couldn’t help as his situation was somewhat complicated. A friend of his – for whom we had arranged a mortgage – suggested he get in touch with us.
My client and his wife lived in a North London property that was split into two separate flats. Although they jointly owned the freehold, the flats were on separate leases. One was in my client’s name and the other was owned by his wife; both flats had a mortgage secured against it. To make things more complicated, the two mortgages were with different lenders.
They had already carried out the internal building works needed to knock the two flats together and make the property one. Following the renovations, the property was valued at £600,000. The difficulty lay in the two separate titles, as most lenders would want them to be collapsed into one before they would issue funds.
In this case, my client needed to find a lender who would issue a mortgage allowing them to pay off the two existing mortgages and combine the titles. There was also a debt consolidation element – he had around £50,000 of credit card debt – and he was also planning to raise capital for future home improvements. This added an extra level of complication as some lenders have limits on the amount they will lend for debt consolidation purposes.
I therefore needed to find a lender who would be happy to issue a mortgage before the two titles and the freehold had been collapsed into one, and who had no limits on debt consolidation.
I was ultimately able to secure my clients a 2 year fix at 1.85%. This was an excellent solution for them, and they were delighted.