First time buyer, can i add a seperate garage to my mortgage?

paulmorris862

Hi all, just in the process of buying my first home with my wife and two little ones.


The house is at the end of a terrace in the town centre and to be honest parking is a bit of a nightmare, there's a single yellow line out the front (no room at front for drive etc) and there's no other parking spots within 500yrds of the house.


It does come with vehicle access rights to the rear of the house down a long lane of which my house is at the end of. most have built car ports / garages to the rear of their property and thus losing all of their rear gardens.


Its very tight at the end of the lane due to a double garage on the end 90degrees to my house if that makes sense.


I've two options, either knock the rear wall down, lose all my garden and no doubt struggle faff and fart about trying to squeeze two cars on there. (which I really don't want to do).


Or buy the double garage at the end of the lane which I've spoken to the owner about.


He wants a fair chunk of cash for it £30k, so cash is not an option for me, what I'd like to know is;


Can I add this garage to my mortgage? as the garage owner is a different person to the house owner?


It would no doubt make my life a lot easier and add value to the house seeing how bad parking is there.


The garage according to the land registry also comes with vehicle way of rights and is literally two feet from my back wall.


Sorry it's so long winded, I just want to have a bit of a heads up so I don't make an !!! of myself when I question my mortgage advisor later in the week.


Thanks in advance


Paul

paulmorris862

I apologise in advance for my spelling and grammar too! It's been a long day and I'm poor at the best of times

Annisele

paulmorris862 wrote: »

Can I add this garage to my mortgage? as the garage owner is a different person to the house owner?

Generally, no.

If there are two separate titles now, and you plan to keep them that way, you won't be able to use the house and the garage to secure a standard residential mortgage.

There are products that will let you have one loan secured against two properties, but they aren't standard residential mortgages (and they don't have residential mortgage rates). If you want one of those, you need a broker.

How tight are you on LTV (loan to value) on your house purchase? If, say, the house is worth £400k but you're only borrowing £200k, then (subject to income) it should be fairly easy to borrow £230k instead, then use the extra to buy the garage cash.

I've no idea if you'd be able to merge the titles and then get a single mortgage that way. That's probably a question for your conveyancer.

But mostly, don't worry about looking an idiot in front of your mortgage adviser! If everybody knew everything about buying houses, mortgage advisers would all be out of a job. They don't expect you to know everything they do (and if they do, find a new one).

paulmorris862

Thanks for the reply.


We'd like the garage added to the house deeds if possible, not kept as two separate ones.


We are well under our affordability, by about 100k to what they offered, so repayment wouldn't be an issue.


Our LTV is pretty poor as it's a 90% mortgage, we could find the extra for the deposit, it's more can they be merged together?


The house kind of came out of the blue, we've just cleared all our debts, been hammering them over the last 12 months, then in the last few months we've forked out a lot, new car, fridge freezer, washing machine, everything seemed to pack in all at once!


We weren't really looking to buy so soon but this house just fits our bill perfectly and houses don't hang around in that area long so we went for it.

silvercar

I would think this would only be possible if you could

a) merge the titles to create one title covering both and
b) the value of the new property with garage is sufficient to warrant the mortgage.

Sometimes the addition of a garage will make a property easier to sell, it may not add to its value by as much as you are paying.

Is it possible to rent the garage for the time being?

searchlight123

bearing in mind that you are now considering spending an extra £30k to gain a parking space, is there not an alternative house in the area you want, that with your increased budget, already comes with room to park?
it would simplify things for you surely?

davidmcn

In principle this may be fine, but bear in mind the extra difficulty in juggling the transactions, as you presumably won't want to contract to buy the house without the garage (or vice versa). Best to discuss with your solicitor.

dimbo61

This sounds like a nightmare and owning a family home with no parking outside or nearby sounds like a real headache.
£30,000 for a double garage WOW it must be good.
Central London, playroom/office upstairs ? 16x16 feet ? Power and light ?

saabay

Legally, there is no issue with two separate titles and one mortgage. Loads of properties are comprised of more-than-one title eg. an extra piece of garden land may have been purchased. There is no requirement to merge them.


Your issue may be one of valuation, as others have stated, and there will be two purchase transaction (there are two different sellers) so you will undoubtedly pay two lots of fees albeit that the garage transaction may be slightly less complicated.