How much can we borrow we a rental income from annexe?

Cici_K

Couldn't sleep all last night over these issues. It's definitely a bargain because of this annexe issue. Hope you don't mind but here is the advert for the house. http://www.rightmove.co.uk/property-for-sale/property-41376914.html

I'm sure it being a post office centuries ago should be no problem as its part of post office cottages and one has recently sold. I'm assuming here they would have had a mortgage. Again could be a cash buyer.

As you guys have said, I can't afford the place without my inheritance and that hasn't been settled yet.

I wonder if the current owner (again this is house is part of a deceased estate probate) maybe be able to alter the annexe and become a shed again.,annexe has its own entrance from the house. I think we might still go see it and see what the estate agents has to say about it.

GMS

How much deposit do you have?

When did you enter the UK?

You need to check how the title(s) are registered as Holly says. Access arrangements etc would also need to be checked.

As you can repay the total in 6 months you may find options though they will not be cheap.

Cici_K

Currently we have £100k deposit, i don't work. Hubby does, hubby is british ive been in the uk for 6 years, I'm a resident. Ill inherit about £250k.

I'm worried about house values going up, as u can see we don't live in a cheap area. And we're just about to afford something in an ok area with good schools. Not sure to wait until we get the inheritance or buy now with mortgage. Any advice? We've been looking here and there for months now. This is the first one that we fancied.

dshart

holly_hobby wrote: »

Please keep to 1 thread for the same subject.....
https://forums.moneysavingexpert.com/discussion/4812450

If it has its own council tax band, it suggests its on its own title deed, which means that its completely separate entity (legally) to the main dwelling in any event, equating to the requirement of 2 separate mortgages if you wished to pch the 2 units (unless the title split was reversed).

Fraut with issues for those requiring a mortgage to pch .. walk away would be my advice.

Hope this helps

Holly

It is possible to have 2 separate council tax bands even though it is one legal entity. I got caught out with this when I converted an outbuilding into a self contained dwelling. The covenant in my deeds says I cannot sell it separately from the main dwelling but no sooner had I completed the conversion than the valuation office was knocking on my door and slapping a tax banding on it as it is self contained.

So now I have one property with a self contained annexe and two council tax bands which need to be paid

GMS

You said earlier in the thread you would need a tenant for 6 months until you receive inheritance and pay everything. I was thinking you could clear the full amount but you would still need a mortgage which has issues as discussed.

What income does hubby have? Any children? Any credit commitments?

holly_hobby

From the pics, its now obvious that the annex isn't attached to the main dwelling, and is in reality a converted storeroom/outhouse into a bedsit type arrangement (it having its own CT band suggest planning permission was obtained).

I would suggest saying its to be a used as a standalone office (which may help get away with the having the extra cooking facilities), see if a lender will accept that. Later, as it appears its all one deed, you could have a lodger. Lodgers don't need lender approval, but they must have available full useof main family living quarters to qualify as such (kitchen, lounge, etc), and to avoid any later CGT issues if you later decide to sell up).

Once your broker has bottomed out what the surveyor/lender will or won't like you can go back to the Vendor. If the surveyor wants the kitchen area removed for completion (which looks from pics like an Ikea put you up one), should be pretty simple, and you could put that to the vendors. However, post completion if you don't want your lodger sharing your kitchen utiliies etc, you would need to put something back in place for them .... but that would be for you to decide.

As I say your broker should be talking to his lender BDMs and their UWs to establish on what basis they would be prepared to lend - then you can take it from there.

(PS - it is a lovely house and seems to have a farily typical residential layout, so its previous life as a PO shouldn't cause issues from a survey point of view)

Hope this helps

Holly x

dancingfairy

It could take a while for things to progress a month or 2 so that will leave you less time you need aditional borring for.
I would look into it further. You can always make an offer and then get surveys etc carried out. Until you exchange it is not binding on you (although you do run the risk of upsetting the seller if you pull out).
df