Buying next door and knocking through

[Mtwa]

My son is thinking about getting a mortgage to buy next door and then knock through to make one big house, and sell it on, what I'm wondering is how that would affect our mortgage and his.

[wowfudge]

I don't think two different mortgage companies would give permission for starters.

[WhatKatyDidnt]

Why would it affect your mortgage? Also, the council may not allow it as (depending on where in the country you are) most areas need more homes, not fewer.

[wowfudge]

Why would affect their mortgage? Because I read it that the OP means the house next door to her. Unless the houses are only, say, two bed houses I can't see the benefit of doing this or that you would make more money than selling two separate houses. The mortgage would want to protect its interest and if you turn two separate dwellings into one then how do you deal with that?

[wowfudge]

mortgage company

[WhatKatyDidnt]

Ah, yes that makes sense wow. Wording is a bit ambiguous.

[SoupDragon]

I don't think one big house would necessarily be worth more than two small ones.

[Floggingmolly]

I'd imagine it would be worth considerably less than two small ones...

[titchy]

Bad idea.

You'd probably not get planning permission.
Won't make sense financially.
Mortgage company won't allow the properties to be re-registered as one even if you do get pp and do the work, unless you pay one of the mortgages off first.

[MaCosta]

Surely in the vast majority of places one house is worth less than two smaller houses.

And as others have said, unless you own both outright, the mortgage companies simply won't allow it.

[YoniMitchell]

What do you think about the idea OP?

Personally I think it's a bad one for all those reasons ^

[TalkinPeace]

People behind me have done this but very quietly.
They have put a door between the two dining rooms and a door between the two small bedrooms.
Other than that the houses are unchanged.
When the daughter and her friends want privacy they lock the doors
when they want big family time they open them

it works.
Both houses owned outright

BUT
THe houses are worth more as two semis than a 6 bed detached
so when they sell they will re - split

[GerbilsAteMyCat]

We bought next door and knocked through, however, 2 houses are ALWAYS going to be worth more than one house. We did it because we needed more space (parents/in laws visiting for several days at a time) and left it possible for the house to be split up again.
We didn't tell our mortgage company naughty but the mortgage is small and will be over soon.
House insurance and rates were a pain to sort out.

[Mtwa]

Thank you all for your comments, I have 60000 left on the mortgage and brought the house for 90000 next door is on he market for 110000 wich my son was going to buy make both into one big 4 double bed house and sell on Thought we would make a good profit but by he sounds of things you guys don't Think it's worth it. I'll show him this thread see what he says.
Thank you all again

[shovetheholly]

I think you have to look very carefully at whether the end result will be worth the price of the two houses plus the labour and materials involved. Making two houses into one that really 'works' in design terms often involves a massive conversion with a lot of costs involving in removing and rebuilding walls. It is often simply cheaper to buy a purpose-built 4 bed house.

Bear in mind also that there will be a ceiling on properties in your area. If most houses are on the market for 100,000, then it's unlikely that you'll sell a knock-through for a substantial profit.

[GerbilsAteMyCat]

You don't need planning permission, just building control.

[GerbilsAteMyCat]

But I agree, unlikely to make a profit!!

[ClashCityRocker]

Someone did this on our street - two two beds bought for 150k knocked through to make a four bed with a larger kitchen, dining room and garden.

Five years down the line, it's on the market for £280k, and realistically looking at similar properties in the area, will be selling for £265 to £275k. Two beds similar to those purchased valued at around £160k.

The renovation was done in such a way that it isn't easy to split - and I suspect 20k renovation costs would be a conservative estimate (new kitchen for the larger kitchen, relocating stairs, moving a few walls around).

No idea why they've done it, or what they hoped to achieve, but once they've added in estate agent and solicitors fees, it would be difficult to see how a profit would be possible.

However, that could just be the idiosyncrasies of our particular area - how much would a larger house sell for in your area? do you or your son have any experience in building projects?