One house with two titles, mortgage problems?

In some areas you couldn't build unless you had two blocks.

 

I guess some blocks could be too small to build on.

 

Yes probably, but also it was to reduce the amount of houses in bushfire or conservation type areas.

 

Land was Cheap. Developers sold off as 405m, 10m frontage to allow for cottages and workers accommodation BUT many people bought 2.
I have never seen push back on it at all. If the house is small enough you may be able to slide it sideways and have another block of land. I could imagine that if you bought in SMSF with a loan and then you slid the house to one of the block you are changing the asset and there is an issue.

PM me the address and I will answer back here (sans identifying info) and let you know.

 

thanks guys for the detailed explanations!

 

I've had clients withdraw from deals for this very reason (as advised by the solicitors) because the car space is on a different title

 

This is very interesting I must say. You could potentially if you knew the system expose this and get a very cheap and easy subdivision done.

@northfan I am guessing they are asking the same, if not less for this block compared to similar properties of the same size on a single title?

As @RPI has said if the house was able to be slid and fit on one block, you could free up a block of land already titled within weeks. If your not interested in this deal, could you PM me the details

 

As long as sliding the house still works with the framework of it being in a conservation area.....

 

Yeah ofcourse, other consideration is what state the existing house is in. Might be an opportunity to knock it down and build 2.

 

Only an issue if the car space can be sold separately. If it has to be sold together its possible to do this under SMSF.

 

I'm buying two titles at the moment, its really not interesting. Its just two blocks side by side, one is a fairly typical uncleared building block with not much to say about it, the other one is truly awful. They're bundled together because you simply cannot build on the awful one and nobody would buy it on its own. Together, you get the same as a 1 block of buildable space, but 2 blocks of 'interesting' land to pop a garden on. Council have them very tightly paired in the system and the rates are calculated as if it is one block.

I'm treating it like a buy one get one free deal, with the bonus that the awful one is actually dragging the value of the good one DOWN. Property logic is weird sometimes.

 

Ive heard of 'shoplifters' but 'houselifters' are generally called burglars.

 

Why was it not able to be removed @wylie?

 

It's a type of deal some people specifically look for to do exactly that. However not all deals will work in practicality or may work practically speaking but not stack up financially. sometimes there's just no upside to the two blocks. For example, one I looked at for myself last year was on two titles and the house was only on one of the titles. When I looked at the other block of land it was basically a cliff filled to the brim with vegetation and if a house would have been built it would have crowded the existing and been expensive to build which made it not viable. Perhaps some really creative minds could have found a solution, for me, there were too many things that made me think it wasn't viable.

Another one for some reason and I can't recall the specifics, basically wouldn't have been able to get through council. House was on one block full width of block, and the garage on the second block. Council would not allow parking to be built at the front of the existing house, second block was too narrow for a boundary re-alignment to allow a driveway to go down back of existing to create parking then new build on second block was too narrow for parking too.


Another example when it often doesn't work is regional areas where properties are large and often on a few titles. In a low demand area it just doesn't stack up. But in area with higer demand and low DOM it can be OK.

Brissie can work well for these though. They are in high demand, usually have to pay a premium and be super fast.

 

Yeah, that's what I'm buying. The second block is just utterly useless for building on. This is probably reasonably common.

 

In WA even if the current zoning means the block doesn't meet the size required for subdivision, it has a clause which states that if it was previously subdivided that is still valid.
So where it has one house over the 2 titles people will demolish the house and build one on each title.
The character overlay/protection of course adds another layer of complexity but depending on if the house has any valid heritage points or the type of house or the replacement proposal it may still be possible to take advantage of the 2 blocks.

 

Not an issue at all

 

Often they are 2 lots on 1 title. we normally split them in 5 days but depends on titles delays

 

yes. the asking price is not different from other average properties. they actually told me that all avenues to capitalise on such two titles setting has been exhausted, they thus recommend to just consider it as a normal property with some minimum extra title arrangement.

I wasn't sure whether the two titles thing could possibly cause big headache in term of getting a mortgage, that is why I decided to ask you experts on propertychat.

thanks!