Desperate help, please! Mortgage for annex property with council tax issue

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  • Peas83
    Peas83 Posts: 7 Forumite
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    Somebody just suggested a idea... Maybe people on here could advise.

    What if the deeds were split, so the chalet had its own title. We could then pay cash for it separately and purchase the house and it's deeds via mortgage.

    Would that be viable?
  • ACG
    ACG Posts: 23,729 Forumite
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    Peas83 wrote: »
    Somebody just suggested a idea... Maybe people on here could advise.

    What if the deeds were split, so the chalet had its own title. We could then pay cash for it separately and purchase the house and it's deeds via mortgage.

    Would that be viable?

    If the buildings are attached and you can walk freely between the 2 (ie a door) then no it wont work. Imagine 2 semi detached houses with a door between them - not acceptable, but with a brick wall they are.
    I am a Mortgage Adviser
    You 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.
  • Peas83
    Peas83 Posts: 7 Forumite
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    No, they are not attached at all
  • amnblog
    amnblog Posts: 12,445 Forumite
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    These situations are manageable in most cases. The trick is to tie down the detail and select the right lender accordingly.

    A job for a Broker with more experience that your current one.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • silvercar
    silvercar Posts: 46,968 Ambassador
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    Remember these problems won't go away when you come to sell.
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  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    I've just done one of these where my first lender rejected as potential Airbnb. Didn't even cross my mind either to be fair so I just sent the Rightmove link to the pre-val team via bdm's. Lenders came back saying they liked the look of it and would be happy to nove forward and do a full valuation

    Just needs a bit of legwork rather than !!!!ing in the wind. Get the property to the bdm for each lender and get an opinion


    If all else fails then there are plenty small building societies that do multiple properties on a single title. I did a case for 4 Farm cottages on a single title through Harpenden for instance. Plenty of those small lenders will do it

    Sounds like your broker isn't doing the legwork. How many lenders does he deal with? If they have just the high street then you may struggle. If they are 'whole of market' then you'll find a lender somewhere
  • Ms_Chocaholic
    Ms_Chocaholic Posts: 12,596 Forumite
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    Just to let you know (in case you don't already), even if the tenant in the annex is given notice to leave, they DO NOT have to leave at the end of that notice period. They could still be there months later.
    Thrifty Till 50 Then Spend Till the End
    You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time
  • Peas83
    Peas83 Posts: 7 Forumite
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    silvercar wrote: »
    Remember these problems won't go away when you come to sell.

    We are looking to extend and I corporate the annex into the property as a whole, as one, so hopefully the will
    Deleted_User wrote: »
    I've just done one of these where my first lender rejected as potential Airbnb. Didn't even cross my mind either to be fair so I just sent the Rightmove link to the pre-val team via bdm's. Lenders came back saying they liked the look of it and would be happy to nove forward and do a full valuation

    Just needs a bit of legwork rather than !!!!ing in the wind. Get the property to the bdm for each lender and get an opinion


    If all else fails then there are plenty small building societies that do multiple properties on a single title. I did a case for 4 Farm cottages on a single title through Harpenden for instance. Plenty of those small lenders will do it

    Sounds like your broker isn't doing the legwork. How many lenders does he deal with? If they have just the high street then you may struggle. If they are 'whole of market' then you'll find a lender somewhere

    Our broker is saying its largely the council tax banding issue and that the 2 dwellings have no connection... Doesnt seem right and I will be contacting harpenden specifically to discuss. We don't know of another broker to use, sw England.

    Thank you for yoyradvice though, and I welcome any more thoughts you may have.
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