How to Get a Mortgage for a Property with Two Kitchens
Are you considering purchasing a property with two kitchens? While having two kitchens can be a fantastic feature, it can also raise questions when it comes to securing a mortgage.
In this guide, we'll explore the ins and outs of getting a mortgage for a property with two kitchens, including the challenges, potential solutions, and important considerations.
At Clifton Private Finance, we can help connect you with the right lenders. Through a connected network of banks, building societies and specialist lenders, we have an advantage in the market and can find a suitable one for your needs.
Why can Securing a Mortgage for a Property with Two Kitchens be a Challenge?
Properties with two kitchens can pose unique challenges when it comes to securing a mortgage.
Lenders typically evaluate mortgage applications based on various factors, including the property's condition and value.
The presence of a second kitchen may raise questions and concerns for lenders, as it can affect the property's overall appraised value and intended use.
Numerous homebuyers find themselves surprised when they learn that the presence of two kitchens in a house can trigger apprehension among mortgage lenders.
In fact, certain lenders might even decline your mortgage application outright.
The reason behind this is that properties featuring dual kitchens often fall into the 'non-standard' category.
This classification can constrain your options for lenders and potentially lead to less advantageous mortgage terms.
Understanding the Appeal
Before we dive into the mortgage aspects, let's briefly touch upon why some properties come with two kitchens.
This feature is often seen in larger homes, such as multi-generational households, where different generations may want their own cooking space.
It's also common in homes designed for hosting events or parties, as a second kitchen can be a convenience for catering and food preparation.
The Lender's Perspective
From a lender's point of view, a house with two kitchens can be seen as accommodating multiple families or groups of occupants.
This, in turn, can blur the lines between the properties being used for residential or rental purposes.
Unless you have explicit consent to let from your mortgage lender, your mortgage terms will likely exclude renting out your home.
Getting consent to let at the time of mortgage application is usually an uphill battle.
In such cases, it's advisable to explore Buy-to-Let mortgages if you plan to rent out the property.
For Buy-to-Let properties, lenders prefer to see a single Assured Shorthold Tenancy agreement (AST) that covers all tenants.
However, having two kitchens may imply the existence of multiple tenants with various ASTs in place, making the property less appealing for repossession.
What Other Concerns Might a Lender Have?
When evaluating a mortgage application, lenders carefully assess the property's value as this directly influences the loan amount they are willing to offer.
In the case of properties with two kitchens, this additional feature can have a notable impact on the property's appraised value.
The presence of a second kitchen may contribute positively to the property's worth, especially if it enhances the overall functionality and appeal of the home.
However, this can also vary based on factors such as the quality, size, and condition of the second kitchen.
To address this concern effectively, it's crucial for prospective homeowners of such properties to work with an experienced appraiser.
Their assessment will consider not only the physical attributes of the kitchen but also its market relevance and the potential impact on the property's resale value.
Zoning and Legal Requirements
Lenders have a vested interest in ensuring that the property being mortgaged complies with all local zoning laws and building codes.
These regulations are in place to maintain safety standards, ensure structural integrity, and prevent any violations of land use restrictions.
Therefore, it is essential for any property, including those with two kitchens, to meet these legal requirements.
Any unpermitted modifications or structures can significantly complicate the mortgage approval process.
It's important to note that unauthorised construction can lead to legal and financial liabilities for the homeowner.
To address this concern, homeowners should ensure that any additional kitchens in the property have been constructed in full compliance with local laws and regulations.
If necessary, obtaining the appropriate permits and documentation to verify the legality of the second kitchen can help facilitate the mortgage approval process.
What are my Options for Securing a Two Kitchen Property Mortgage?
Securing a mortgage for a property with two kitchens may require some strategic planning.
Thankfully, we’ve got some advice and possible solutions if you’re facing this predicament:
Honesty is crucial when dealing with lenders. Clearly communicate the purpose of the second kitchen and how you plan to use it.
If it's for personal use and won't generate rental income, emphasise this to the lender.
Invest in a thorough property appraisal conducted by a qualified appraiser who understands the local market and can accurately assess the added value of the second kitchen.
Ensure that any modifications or additions to the property, including the second kitchen, comply with local building codes and regulations.
Having all necessary permits in place can alleviate lender concerns.
Not all lenders have the same criteria for properties with two kitchens. Explore multiple lending options to find the one that best suits your needs. Most importantly, however, is to seek the help of a specialist mortgage broker.
At Clifton Private Finance, we have extensive knowledge of the lending landscape and can connect you with private lenders who are more flexible regarding unique properties.
Costs to Consider
When purchasing a property with two kitchens, it's vital to consider potential additional costs, including appraisal fees, legal fees, and the possibility of higher interest rates.
Properly budgeting for these expenses and factoring them into your financial planning can help ensure a smooth and successful mortgage application process.
Working with experienced professionals, such as estate agents, appraisers, solicitors and mortgage brokers, can provide valuable guidance in managing these costs and navigating the complexities of such properties.
How much can you Borrow for a Property with Two Kitchens?
When securing a mortgage for a property with two kitchens, several factors impact your borrowing capacity.
This is standard with most types of traditional loans, but these types of properties can present unique considerations.
Loan-to-Value (LTV) Ratio
Lenders have maximum LTV ratios on different mortgage products. Properties with unique features may have adjusted ratios, affecting your deposit and mortgage terms.
Income and Affordability
Lenders evaluate your income, expenses, and debts to ensure you can manage mortgage repayments, considering potential utility costs for two kitchens.
A strong credit history is vital. Lenders review your credit score and report. Good credit enhances your mortgage prospects.
However, it is still possible for your mortgage to be approved in this circumstance, even if you have bad credit.
Working with an experienced mortgage broker can significantly increase your chances of getting approved.
A larger deposit reduces the loan amount, which, in many cases, can unlock better mortgage deals.
Need Help Securing a Mortgage for a Unique Property?
Securing a mortgage for a property with two kitchens may seem like a unique challenge, but it's entirely achievable with the right approach.
Understanding the requirements of traditional lenders, carefully evaluating the property's features, and exploring tailored financing solutions are essential steps to securing your home.
At Clifton Private Finance, we specialise in sourcing mortgage solutions for properties with distinctive features, like two kitchens. Don't hesitate to get in touch.