Mortgage for a BLT property with an annex

sorryitsme

Hi Sorry I didn't explain myself fully in my posts.

My mum has had a survey by Birmingham Midshires (her current mortgage provider) who declined the mortgage.

She then contacted her bank and explained everything, they contacted their underwriters who said it will be ok if she has two deeds. They said the deeds didn't have to be in place before the survey was made. They did a survey and then decided they would not offer a mortgage because its an annex, which was much to the annoyance of my mum and the Barclays mortgage advisor as they had explained exactly what it was.

Thank you so much for advice so far it is much appreciated:A

Thrugelmir

sorryitsme wrote: »

She then contacted her bank and explained everything, they contacted their underwriters who said it will be ok if she has two deeds. They said the deeds didn't have to be in place before the survey was made. They did a survey and then decided they would not offer a mortgage because its an annex, which was much to the annoyance of my mum and the Barclays mortgage advisor as they had explained exactly what it was.

The property would have to be seen in order to weigh up the options. Can't be done on the basis of a verbal statement.

holly_hobby

An annex being on a split deed, if it doesn't have its own entrance and utiilty supply will be an issue with all mge lenders, as fundamentally it remains inter-twined with the main residence, and isn't essentially its own unit.

If it does have its own private entrance an separate utilities, then this is completely doable, as Dave says you just need to talk to someone who knows what they're doing and understands the process.

How you would do this would be on a sequential remortgage /deed spliting exercise, with the remortgage valuation based solely on the main dwelling, as upon completion the annex will have no legal association with it, so can't be used for title.

Or if this value won't be sufficient to redeem the os mge, and meet the max ltv for your new lender, you could look to do 2 remortgages, effectively 1 mge per unit (subject to value/max ltvs/rent stress test) - with the same lender would be preferable but they may want to limit their exposure and restrict ltvs or refuse to do the 2 - as I say I would expect an experienced broker to understand whats needed and in the right order, with a pre-placement pre-survey via their BDM/lender contact.

IMHO its not a lost cause, just will be a tad messy .

Hope this helps

Holly x

sorryitsme

Thank you both so much. My mum has spoken to the solictor who she used to purchase the main property and they recommended a broker who said it is definately doable without splitting the title. They are hopeful it could all be sorted in a few weeks.

Thanks again for your advice.

Dave_Ham

Easy to say, proof will be in the pudding.

Do not pay any broker fees upfront unless refundable and ensure any valuation fees are well researched, I think they are being bullish on the telephone and unsure if they understand the various barriers here.

Good luck though