Mortgage for a BLT property with an annex

sorryitsme

Hi All,

My mum has a BTL property with an annex attached and is having trouble getting a mortgage for it.

Before she built the annex to the side of the property my mum contacted her current mortgage provider who said it was ok to build and required no plans etc. (although it was not put in writing).

2 years later when my mum contacted them for an equity release, everything was going ok until the surveyor visited and wouldn't agree to the mortgage as the annex had its own entrance and kitchen.

My mum complained to the mortgage provider as she would not have built it if they would not mortgage it. They claimed they did not have a record of the conversation and just apologised.
They sent her a letter and said the current mortgage still stood and they would not acknowledge the annex, but when her mortgage deal ended she would have to go onto a variable. They also refunded the survey fee.

Her deal is now over and she is on a variable mortgage and would like to release equity.

There is approximately 200k+ equity in the property.

Her current mortgage is with Birmingham Midshires.

Do you know of any mortgage providers that would offer a mortgage on this kind of property?

Thanks in advance:A

Jenniefour

sorryitsme wrote: »

Before she built the annex to the side of the property my mum contacted her current mortgage provider who said it was ok to build and required no plans etc. (although it was not put in writing).

:A

Did you mother rely on the mortgage lender to decide on whether planning permission was needed? Or did she get planning permission from the local planning department?

sorryitsme

Thanks for replying so quickly.

Sorry what I meant to say is the mortgage provider was not interested in seeing any plans.

She got planning permission from the local authority and abided by building regulations of which has been signed off.

Thrugelmir

sorryitsme wrote: »

Sorry what I meant to say is the mortgage provider was not interested in seeing any plans.

Will depend on what your mother said. As a self contained annex is a different matter to an extension to the property.

Matters such as this should always be put in writing. To avoid issues as have arisen now.

sorryitsme

She did say self contained annex.

She requested a SAR but they said they had no record of the conversation as they are not always recorded.

Dave_Ham

As you are finding this is a huge problem for many lenders.

Where does Mum live, as this just says it is a buy to let mortgage but unusual to develop a property to this level with tenants in. If this is rented out , is it rented as 1 property on 1 ast or 2 properties?

sorryitsme

My mum lives in another property.

She built the annex with the idea of my younger brother moving in and paying rent to her.

It is let on 2.

Dave_Ham

Why not split title deeds and capital raise/change provider?

sorryitsme

Dave_Ham wrote: »

Why not split title deeds and capital raise/change provider?

This was suggested by her bank whilst she was trying to do a BTL mortgage through them they explained this to underwriters, a survey happened and then the underwitters decided they wouldn't agree it. This completely baffled the mortgage advisor and they compensated my mum for wasting her time.

So in your opinion do you think split the deeds first, then raise capital?

Also if my mum wanted to sell and the title was split could she get them joined together again before the sale?

Once again thanks in advance:A

Thrugelmir

Releasing equity to fund the deposit on another property may not be that easy.

Dave_Ham

I am a tad confused where you have been already, what you are trying to achieve and how many applications and subsequent complaints have been raised.

Sit down with a broker for formal advice, invariably pay a fee for someone who actually knows what they are doing and this should be achievable.

Personally this would be a sit down with a solicitor and mortgage broker to ensure it can all be pieced together, as one without the other is unlikely.

If you try and sell as is, you may find buyer pool is restricted due to the current setup and therefore price will be affected.