House with annex and splitting deeds

hillde89

Hello, I have an offer accepted on a property, the current owner has got a building out the back that he has separate access to via the rear of the property and it is self contained in the sense that it also has a kitchen, bathroom and one bedroom. The electric consumer unit for what the current owner describes as ‘the annex’ is in the main house. It’s essentially semi-detatched. Question – Can I get this property on a buy to let mortgage and at the time of purchase split the deeds between the annex and the main house and let the main house out while myself as the owner then occupy the one bed house, even though there is clearly lots of work that need doing to the services to split them before I even have the keys? Any advice is greatly appreciated. Or lastly is there a way I get purchase the whole property on a residential mortgage? Thanks

eddddy

From what you say, more likely you'd have to get short term finance (e.g. a bridging loan), and then...

• Get planning consent to split the property into two dwellings...

• Subdivide the property into two (following all current building regs)

• Create two titles for the two properties

• Apply for two mortgages - a residential mortgage for the property that you will live in, and a BTL mortgage for the other one. (Unless you can manage with a mortgage on just one property.)

eddddy

... perhaps an alternative option is to leave everything as it is, and just have a lodger in the annex bedroom - where you retain the right to share other areas of the annex (but perhaps only do so very rarely).


BUT... it sounds like property currently has 2 kitchens. That will be a problem for many mortgage lenders.

The seller might have to remove the cooker from one kitchen before the valuer arrives, and make it into a laundry room or utility room.

See: https://www.theguardian.com/money/2015/jun/18/will-a-second-kitchen-cut-our-chances-of-getting-a-mortgage

hillde89

Thank you very much that is really helpful knowledge and things I hadn't considered, thank you. One more question - Can I change a residential mortgage over to a buy to let mortgage without having another residential mortgage? I've had the exsiting residental mortgage for 4 years. With a view to then moving in with family.

lincroft1710

Often, planning permission for annexes is only granted on condition the annex cannot be sold separately from the main property so there cannot be separate deeds.

G_M

* I don't see the point of splitting the Title up.
* is there a single Councl Tax band, or a separate one fo the annexe?
* yes, gettting a mortgage where there are 2 kitchens can be a problem.


I have an identical set-up. I live in the main house andd have had 'lodgers' in the annexe periodicalky over the years. I say 'lodgers' in 'ICs' because if push came to shove (ie they went to court) they might well be defined as tenants, witth tenants rights even though the electrics, heating, water etc all come from the main house.


I live in fear of the council tax people........!


If/when I sell, I shall do my best to 'de-kitchen' the kitchen and make it..... I dunno, a 'utility room'? Remove the fridge, cooker and electric cooker point and just leave the sink. No idea if that would satisfy a mortgage lender........


A bit more complicated for you as you plaan the oposite; to live in the annexe, while the clearly tenanted main house controls the utilities.

CIS

Assuming England and Wales:

I would expect that the VOA would wish to look at the 'annexe' to assign a council tax band if it has not already been banded. I spoke to a landlord a couple of months ago who had a similar(ish) set up, he got a visit after an ex-lodger spoke to the council regarding the property. The council picked up on the possible un-banded property and the VOA then came knocking...

I would also add that, once council tax is being discussed, the term 'annexe' has a very specific meaning.

hillde89

I was only thinking of splitting the title to increase the value of assets. I.e purchase price of £300k, then split them and having a property worth 250k and 100k for example.

It might be worth noting the annex has a separate hot water tank but other services and generated from in the main house. I believe it has a separate fuse board, but again this is inside the main house.

The property has previously had 2 council tax bands. Is it viable to combine this back to just 1 council tax bill as a big house?

How does the term annex differ once council tax is discussed?

Does anyone see how I can purchase this property on a residential mortgage???

Spanner in the works too, after speaking to Halifax today they said under no circumstances are they now granting consent to let on a residential mortgage. Anyone had experience of this? I feel effectively stuck in my own home!

CIS

How does the term annex differ once council tax is discussed?

Council Tax has a specific definition of 'annexe' for it's own purposes. A property which meets the council tax definition of an 'annexe' may qualify certain council tax reductions which are not available to non-annexe properties (again using the council tax definition).

The property has previously had 2 council tax bands. Is it viable to combine this back to just 1 council tax bill as a big house?

If it has been two at some point then what changed ?

hillde89

CIS wrote: »

Council Tax has a specific definition of 'annexe' for it's own purposes. A property which meets the council tax definition of an 'annexe' may qualify certain council tax reductions which are not available to non-annexe properties (again using the council tax definition).


It it has been two at some point then what changed ?

On the basis I will remove the annex kitchen and its then essentially a glorified shed in the garden?!

Jumz

My partner and I own our property and are separating , we want to convert the property into two separate flats and each live in one, we are aware that we will need planning permission and will need separate  utilities etc, does anyone know how Much it cost to split the utilities and how you go about splitting the tittle deeds