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Do we have to move to a commercial mortgage??
snowdon_2
Posts: 8 Forumite
Sorry, bit of a long one here!
We have a mortgage on a family home. We have a 3 bed house and are thinking of undertaking quite major changes to it.
At the moment it is a standard layout on two floors. We thought if we convert the ground floor into a granny flat (it would be completely contained) then have kitchen, living room, bathroom and a small double on middle floor and go up into the roof to make two more small doubles.
It all sounds ok but we would need to borrow more on our mortgage to do it. As we hope to holiday let the flat would we have to take on a commercial mortgage for the whole borrowing or could we just get one for the conversion costs? Its a bit of a minefield!
Thank you for any help!:T
We have a mortgage on a family home. We have a 3 bed house and are thinking of undertaking quite major changes to it.
At the moment it is a standard layout on two floors. We thought if we convert the ground floor into a granny flat (it would be completely contained) then have kitchen, living room, bathroom and a small double on middle floor and go up into the roof to make two more small doubles.
It all sounds ok but we would need to borrow more on our mortgage to do it. As we hope to holiday let the flat would we have to take on a commercial mortgage for the whole borrowing or could we just get one for the conversion costs? Its a bit of a minefield!
Thank you for any help!:T
0
Comments
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It depends...
If you intend on splitting the deeds then you could have a holiday BTL mortgage potentially on the holiday let part and then a residential on your home.
If not, then I think you probably would need to get commercial finance on all of it.
I think you really need to sit down with a broker as your right it is a minefield and probably far too complex for what this forum is aimed at.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thank you, we hadn't considered splitting the deeds. That sounds expensive but in the long run it would then have potential to sell separately.
We were thinking more for in the long run though as a pension income (not much chance of government one in 20years?!!). Although it probably means re mortgaging for 20years to achieve it!
Thanks for your help0
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