Splitting land titles on a country estate allows purchase with residential and buy to let mortgages

Area
Buckinghamshire
Capital Raised
£3.08M

Large mixed-use country estates offer attractive potential to buyers, with outbuildings offering rental income from business units or home rentals. But a mixture of owner-occupier and rental can be problematic for lenders.

The Scenario

Our client, a senior manager in corporate hospitality, was buying a beautiful 4-bedroom manor house on a 67-acre estate in Buckinghamshire for her family. In addition to the substantial main house, a stable block annexe offered additional accommodation in two units – one with four bedrooms, the other with three, plus kitchen / living areas. There was also a 3-bedroom entrance lodge; our client intended to rent the additional accommodation out as three separate units.

The estate was being sold as one title, but mortgagors are reluctant to lend on properties that combine residential and rented properties, because of the issues involved with evicting tenants should the borrower default on the mortgage.

The Solution

The answer was to put the rental properties on four separate titles: the main house, each of the stable block units, and the entrance lodge.

It can seem like a daunting amount of legal work, but a vendor will quickly be aware that any purchasers needing finance will face similar issues. And in this case they were still only dealing with one highly-motivated buyer.

The legal costs of £500-£600 for each title transfer were manageably absorbed into the total purchase costs, and we were then able to arrange the four mortgages for our client: one residential and three buy-to-let.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange to discuss your situation at any time that's convenient for you.

James Palmer

Senior Associate

London

0203 900 4322

Are you looking for similar property finance? I specialise in development and commercial finance for Clifton - I can find creative and commercially effective solutions for your project.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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