Problems getting mortgage for property with annex?

anfa22

Hi, just wondering if anyone has had a similar problem or any ideas?
We're looking to buy a property which has a self-contained holiday annex. It has planning for Change of Use to a holiday let in existence. (The idea being that it would help to pay some of the mortgage.)

Our mortgage broker has told us that no mortgage lenders will currently lend on a property with an annex.

Anyone else had this problem or know of a lender that will?
Thanks

Senior_Paper_Monitor

Certainly many won't - but there are a small number who will if the rest of your circumstances are right (income - without the let, LTV, credit status etc), but far too little information here to guess the circumstances.

anfa22

Thanks for your reply.

Incomes are more than enough to cover the mortgage, the only variables is that we are both self-employed, one of us a sole-trader, one a director of a limited company. Lived a same property for 8 years with no credit problems etc.

I'm going to do some phoning around myself, but any thoughts which banks may lend for this kind of mortgage?

Conrad

Oh yes I love these cases!!

Have had some sucess with such cases but they are tricky. You need to be mindful that your earnings are complex too, in the eyes of lenders, so great care will be needed on your part - don't go bounding in with both feet - tread carefuly.

I cannot recall off the top of my head which lenders helped but from my memory off the cuff I think one was approved with TWM, and another with C&G.

Conrad

One possible course of action is to consider whether the property can be split into 2 separate deeds, each with it's own unfettered physical access - unlikely but sometimes a solution.

anfa22

Thanks, that's really helpful, as my current mortgage is with C&G, I'm going to try them first. We have considered splitting the property or getting the Change of Use changed back to the main house living accommodation, but I'm not sure that would be enough for the mortgage lender as it would still have a separate kitchen etc.

I guess if it was split into 2, one would have to be a buy-to-let mortgage?
Thanks again

anfa22

Just to conclude this thread, at the time of writing we can't find anyone to lend us a mortgage on a house with an annex, so have given up!

The reason they have all given is that if someone other than us is living in the annex they would be unable to get them out if we deferred on the mortgage.

Would be interested to know if anyone has been successful with this.

WARNING TO ANYONE WISHING TO PURCHASE A HOUSE WITH AN ANNEX USING A MORTGAGE - LENDERS ARE CURRENTLY NOT LENDING ON THIS TYPE OF PROPERTY!

Conrad

As I mentioned previously I have had 2 of these recently and both completed sucesfully.

Anfa, with respect a member of the public calling lenders in such circumstance will always stuggle. This is complex and has to be placed with great care. You will be calling call centres where staff have nothing like the experience to be able to help you and they will be simply refering to a handbook.
Find an experienced local broker is my advice, or give up.

All the best.

Senior_Paper_Monitor

So you have two people (admittedly only one publishing the mortgage broker health warning - I am stll sulking after the mods removed my original signature which I believe complied with their instructions on declaring a couple of potential interests) who explain that this will be a specialist placing - you try and do it yourself, fail as I (and Conrad) would expect, and then announce, based on this extensive experience, to all the forum readers that no-one is lending on properties with annex !

Yes they are - not many, certainly - but you really would be best off using an experienced broker as Conrad says IF you actually want to buy the place.

pfawcus

Did you have any luck in finding a mortgage provider for your annex. I am also looking for a mortgage on a property with an annex and am interested in which providers are available to me?

madda

Hi all, Google has directed me towards this thread after searching for the answer….before the question is asked by my lender. I notice Conrad and SPM are online which is my driver for signing up and posting.

I am currently in this situation, offer accepted, mortgage agreed in principle and the surveyor visited the property yesterday. The annex on the property I am looking to purchase is attached to the main house and has been in place for 12 years and was originally a conservatory. It is currently used for storage but does have separate access.

I ideally want to keep this as office space with separate access due to the confidential nature of the role I undertake but if the challenge is raised by the lender, would simply blocking off the door and creating a new access point from within the house usually satisfy the lender?

I am trying to tread very carefully therefore any advice will be massively appreciated.