Remortgaging house with annexe I want to rent out

Teadronker83

Hi all,

I own a house with a two room outbuilding that we have done up as a granny flat. The outbuilding is detached from the main house but lies within a couple of metres. We live in rural Scotland, and we would not be making significant money from letting out the outbuilding to tourists, but it could be a useful little earner.

My question is, is there a way to remortgage out house, whilst still retaining the right to let out the outbuilding? I suspect that takin out a commercial mortgage wouldn’t really justify itself against the modest income we would expect to make from letting. Is there a way to remortgage only the main house, and to somehow legally divide it from the outbuilding, without ending up with two “homes”.

All advice welcome!

davidmcn

In theory yes, you can grant a security over just part of your property. In practice many lenders seem to have a difficulty with this unless you split the title between the two properties, which is tricky unless you're actually transferring the property to someone else. Not sure which lenders are more broad-minded about it (or would just allow you to mortgage the whole lot and have holiday lets for part of it).