Can we let a Granny Annexe?

theMoneySaver_2

I have recently seen a house with a granny Annexe(it has a bedroom, bathroom, kitchen and also a separate front door with a number 2A on it), the address of the main house is 2. The current owner says that they used have their parents in this house, but his parents moved to another siblings house.

I am a first time buyer and I don't want to take the buy to Let mortgage.

I want to go for this house, but wanted to clarify the following questions before going forward.

1. Will I easily get a Mortgage for such a house and remortgage after 2 years?
2. Will I be able to rent out the 1 bedroom annexe. There is already a separate Council band for the other house, I am OK to pay the extra council Tax as long as I get the rent, I can use this rent to pay part of my monthly instalment as well.
3. Should I go for a AST (Assured ShortHold Tenancy) or can i get away with giving it to a lodger (as there is one door in the hall which connects the annexe and the main house) or Can I not let this property at all because the lenders will not allow me to do so, will the lenders be able to check on me at a later stage
4. Will there be problems when I sell this house?
5. Or at a later stage, would I be able to remove the connecting door and sell the annexe and the main house as two separate houses?

Guest101

Hard to tell if you could get a lodger, first reaction was no. but it may be possible. You should check first, otherwise you may grant someone a tenancy, and then you need LL insurance, Gas safety certs, deposits, etc etc etc

System

Check the planning permission for the annex. Occupants may be limited to family

jamie11

For the tenant to be a lodger the annex cannot be self contained, you would normally share a bathroom/kitchen and maybe even clean the room(s) as part of the deal. The place has a separate address and is already banded for CT.

I agree with Guest101, the tenant would have an AST.

Bit puzzled about the connecting door though, does it not have it's own front door as well?

Mojisola

jamie11 wrote: »

Bit puzzled about the connecting door though, does it not have it's own front door as well?

Friends of mine had the same set-up. Mother had her own front door into her annexe but there was also a connecting door into the main house. If Granny isn't well and needs checking on in the night, it's easier to go through a connecting door than out of the front door and round to hers.

Itismehonest

Firstly, as has been said, check the planning for any restrictions. It could be restricted to family members.

You may have trouble getting a mortgage on it. Lenders are worried about having anyone other than those responsible for paying the mortgage living in any property on which they lend.

Yes, you will be liable for CT (ours is classed as a 2nd home). You will also need to have the correct insurance.

How easy or not it would be for resale depends mainly on planing restrictions & the ever-changing goalposts of lenders.