Property with annex - mortgage provider

looking_after_my_pennies

We are looking to buy a property with a self contained annex and I understand some lenders don't like this because the annex in theory could be let or someone could gain occupiers rights in respect of it making it more difficult for the lender to sell the property if we were to default on the mortgage and they had to repossess. We want to reincorporate the annex back into the main house. Does anyone know the lenders that are happy to lend on houses with annexes? I know that YBS and Woolwich won't. Any tips much appreciated.

Senior_Paper_Monitor

The answer depends on many things - too complicated to do on an online forum.


Have done several of these over the last few years - and the lender has been different on pretty much each occasion.


2 choices ....


1) random applications to various lenders (or time spent asking individual lenders but not sure if the contact level is able to answer the question properly) risking rejection (earlier or later in the process) and credit searches


2) throw a few bob at a mortgage adviser to identify your most likely fit(s)

looking_after_my_pennies

I have asked a few lenders. We were looking for an offset so the pool is limited. Nationwide seem to but don't have an offset. Coventry BS have an offset but a mortgage on a property with an annex is subject to valuation. I don't want to risk making an application, then at valuation being refused if it will affect my credit rating and then any future application to another provider. I know exactly what you are saying about the call centres, they don't always seem to know the lending criteria. We were looking at a broker but they were charging £500.

Senior_Paper_Monitor

So - £500 to potentially:


1) Save you paying for application/valuation fees of xxx


2) Save you having unnecessary searches on your credit file


3) Save you perhaps 6 - 12 hours of research (before you process the application - or potentially applications)


.... robbing barstewards !!

amnblog

SPM is right.

You need a decent broker who has done this type of case before.

You won't work this out without one unless you get lucky.

This last one we did we did not need to charge a broker fee as it was a good size case but you should be prepared to cover the brokers time if yours is not.