Creating a new self contained flat in a mortgaged property

sheikhsaddy

I bough a semi detached property in 2018 as my main residence, got mortgage from Halifax. It had a lot of space to the rear and side, so I was able to create a self contained one bedroom flat with its own separate entrance. It has been more than four years so I have the required evidences to apply for the Certificate of Lawful Development.

The problem is that this is a mortgaged house, and I do plan to remortgage in about 2-3 years to get my equity out. There is an option to make minor changes at the time of remortgage to make the flat part of the house (No more than £500 and 2 days work), and then revert back once the remortgage is done (that is, only if needed).

The question I have is if I should apply for the Certificate of Lawfulness? In terms of safety of rental income and rental value of my property, this is a great opportunity. But if it can come in the way of remortgaging the property or can negatively impact the valuation of my house then I will obviously not apply.

What are your thoughts? 

JMA74

There are high street lenders who will lend on standard terms when a property has an internal annexe with its own kitchen facilities and own entrance.

So no need to pretend its a single unit, just see a broker at the appropriate time and get the proper lender