One house with annexe 2 addresses

paulpa66

Looking to buy a house that is detached with self contained annexe. The house though appears to be 21 and 21a with each having its own poll tax etc. Both have kitchens and outside door access. Value approx 700k and i would need say a 60k mortgage. Would a mortgage company lend on such a property when to all intent they are two although my intention is to make one?

HCM

A residential lender won't lend on this scenario. Sounds to me like the title has been split.

Any property with an annexe must have services such as gas which run off the same meter. Valuer will refuse to provide a valuation on this basis alone.

Karen_A-M

I have a similar issue...
The house I live in had an extension built onto it in the 50's. At some point that part was sold off separately. It is now up for sale and I want to buy it - for cash. I have a mortgage on my current house. There is already a door between the two properties (boarded up from both sides). I want to return the property to it's original state ie make the two houses back into the one property it used to be. My mortgage company have said it would be an unacceptable risk...

There must be a solution but I don't know what it is. I don't understand what the problem is as I am not asking the mortgage company to extend my mortgage or lend me anything at all. I'd be paying the same mortgage I pay now but the house would be bigger.

Any advice or suggestions?

Ben8282

If my reading of your op is correct, you are only looking for a mortgage of less than 10% of the total property value. Why not pay cash for one of the properties and get a mortgage for the other? Surely with an equity of over 90% of total value, a mortgage should not be too hard to obtain.

AnotherJoe

OP you might also need to pay the 3% extra SDLT. I'd ask them to combine the properties first.

amnblog

HCM wrote: »

A residential lender won't lend on this scenario. Sounds to me like the title has been split.

The first statement is not necessarily correct, the second is an assumption.

We are doing a similar case for a client now.

Important points are:

Is the property under one freehold?
Is there one set of income services and meterage?

paulpa66

So is it possible to get the Council to re rate the house as one rather than 2 and also have land registry do the same. I guess i could make a cash offer if a mortgage will prove hard for others, or even a small personal lo0an then remortgage once all the above is rectified?
If it had two gas/electric supplies get those changed too.

paulpa66

amnblog wrote: »

Is the property under one freehold?
Is there one set of income services and meterage?

By freehold you mean one owner on the Title i.e Mr Smith not Mr smith and Mr Brown?

amnblog

Don't go running away with this Paula.

It has little to do with the Council.

Land Registration is key (are you aware of the position)

Don't assume you can re-mortgage easily after purchase (it is more complex than that)

Get some decent advice from a broker and a solicitor.

amnblog

paulpa66 wrote: »

By freehold you mean one owner on the Title i.e Mr Smith not Mr smith and Mr Brown?

No Paula, nothing to do with who owns it.

Freehold means that the property and the annexe and the land on which they are built are held under one title with the Land Registry.

Pop the address in here to start https://www.gov.uk/search-property-information-land-registry

paulpa66

amnblog wrote: »

It has little to do with the Council.

Land Registration is key (are you aware of the position)

.

Currently Mother lives one part, daughter the other.
The council was more to do with it having two council tax bands

Emailing these questions now so hopefully get some answers later
1) Is the property under one freehold, the property and the annexe and the land on which they are built held under one title with the Land Registry
2)Is there one set of incoming services and meterage? i.e Is the Gas/Electric on one meter or does each property have its own