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LittleSteroid

Buying Three Flats As A One Lot

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Hi. As per title. There are three flats available to buy all in one building (converted victorian), one owner. Each is priced individually but vendor is keen to sell them chepear when bought as a one lot. Is it possible to get one mortgage for all three flats (as a one lot)?

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Hi. As per title. There are three flats available to buy all in one building (converted victorian), one owner. Each is priced individually but vendor is keen to sell them chepear when bought as a one lot. Is it possible to get one mortgage for all three flats (as a one lot)?

If you go for all three, make sure you buy the freehold too.

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It won't happen. There is commercial property on the ground floor. Not for sale. <_<

Ah, does the seller not own the freehold? I ask as it sounds like the building consists of the freehold, the commercial leasehold and three residential leaseholds. I suppose the freehold would be worth quite a bit as you'd get quite a nice bit of rent from the commercial unit! If you do buy all three flats then you might end up paying three lots of service charges and/or ground rents. Look into it! And also with leaseholds don't forget that often there are clauses in the leases restricting improvements/alterations without the freeholder's consent.

Edited by Chuffy Chuffnell

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Ah, does the seller not own the freehold? I ask as it sounds like the building consists of the freehold, the commercial leasehold and three residential leaseholds. I suppose the freehold would be worth quite a bit as you'd get quite a nice bit of rent from the commercial unit! If you do buy all three flats then you might end up paying three lots of service charges and/or ground rents. Look into it! And also with leaseholds don't forget that often there are clauses in the leases restricting improvements/alterations without the freeholder's consent.

Good point, thx ;)

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Hi. As per title. There are three flats available to buy all in one building (converted victorian), one owner. Each is priced individually but vendor is keen to sell them chepear when bought as a one lot. Is it possible to get one mortgage for all three flats (as a one lot)?

Also, find out how the purchase is treated for stamp duty...

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Just a though don't you need planning permission to split a house into three flats? If he hadn't got the planning permission it maybe the reason he wants to sell it as one lot.

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Just a though don't you need planning permission to split a house into three flats? If he hadn't got the planning permission it maybe the reason he wants to sell it as one lot.

Yup you need permission to split a dwelling into two or more dwellings. (Interestingly the other way round - two into one for instance - doesn't need permission...)

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He must have PP. These flat are also availlable separately.

Doesn't necessarily mean he got PP for the flats when the conversion work took place or since (that's if the flats were converted from a single residence of course). There are quite a few flats around without PP - the conversion work only then becomes legal after a certain period of time (4 years? possibly more). A search for planning permissions should be done by your solicitor when you instruct to buy, but it's worth checking out beforehand!

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Yup you need permission to split a dwelling into two or more dwellings. (Interestingly the other way round - two into one for instance - doesn't need permission...)

It can do - if the local authority feels it's short on cheap small units it can refuse - happened in Chelsea some time ago when someone wanted to change a 6-unit HMO back into a family home and got turned down.

Rules might have changed in the last couple of years, in which case apologies.

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See this thread on issues of buying flats above a commercial property, the mix can cause problems.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=133669

and this:

http://www.independent.co.uk/life-style/house-and-home/property/why-living-above-the-shop-can-be-a-risky-enterprise-749127.html

and this

http://forums.moneysavingexpert.com/showthread.php?t=2380997

The freeholder beneath is boss, and from what I read there is no way to fight any unfair charges even if you own the greater share, the shop beneath is the boss...

beware when you buy such flats because i once had a place and ended up paying along with the 12 other residential flats all the insurance for commercial premises!--with flats above shops you can never buy the freehold and the leases are a mine field --it is quite common for the leases to block out the commercial aspect under the property but this can bite you on the !!!--eg the insurance and maintenence -all falls to you unless worded specifically---i would never buy another

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Interesting. Thank You verry much guys :)

You might not be able to get a residential (i.e. high LTV/ low IR) morgage on a multiple-dwelling unit, something that causing me some grief as I'm looking at possibly buying a place that has been part converted to self contained lettable rooms.

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