Mortgage on property with self contained Flat
Discussion
Anyone had experience of securing a residential mortgage on a property with an Granny Flat?
The estate agent has said that getting a mortgage may be an issue as there are two kitchens. Google search seems to back this up.
The flat has separate council tax, utilities and is not internally accessible from the upper floors.
The land registry has both properties listed, but it looks like there is a single title.
The rent from the granny flat would be sufficient to cover a BTL mortagage, so could we get a BTL mortage instead even though we would only be renting out 1/4 of the property.
The estate agent has said that getting a mortgage may be an issue as there are two kitchens. Google search seems to back this up.
The flat has separate council tax, utilities and is not internally accessible from the upper floors.
The land registry has both properties listed, but it looks like there is a single title.
The rent from the granny flat would be sufficient to cover a BTL mortagage, so could we get a BTL mortage instead even though we would only be renting out 1/4 of the property.
Sarnie said:
Is this property for you to live in?
Will it actually be a granny flat? Eg used for a dependent relative or similar?
Or would you renting out formally?
Yes, we would live in the upper maisonette.Will it actually be a granny flat? Eg used for a dependent relative or similar?
Or would you renting out formally?
Short term, it would be a private rental, long term it would be a grandparent flat or we would remerge the units.
Thanks Sarnie.
I'm probably beating a dead horse, but if the seller were to remove the kitchen pre-sale, would that remove all obstacles to a residential mortgage or would there still be concern from the survey about the lack of internal stairs between the floors.
Considering, an secured loan too, but don't know if that is feasible to get the funding in place for completion day, rather than on an existing asset.
I'm probably beating a dead horse, but if the seller were to remove the kitchen pre-sale, would that remove all obstacles to a residential mortgage or would there still be concern from the survey about the lack of internal stairs between the floors.
Considering, an secured loan too, but don't know if that is feasible to get the funding in place for completion day, rather than on an existing asset.
Yes, expect the surveyor to report back that the lay out is not in line with a standard property...........the property would need to be put back to standard entirely......the fear would be that the kitchen would just be reinstalled shortly afterwards......and if reposession happened they would have a sitting tenant residing in part of the property that the lender owns, with probable full legal right to not be removed if he has a valid signed tenancy agreement.....
The jiffle king said:
Would it make a difference if the part to be "let" was done on a "holiday let" or air BnB type basis?
This was there would be no 6 month rental agreement
Or is the issue that it is a separate property?
The issue is that it's a separate property on the same title..........if the titles were spilt then they could be both bought independently perhaps......one as a Resi.....the other as a stand alone BTL...........would still be tricky though.........This was there would be no 6 month rental agreement
Or is the issue that it is a separate property?
Sarnie said:
The issue is that it's a separate property on the same title..........if the titles were spilt then they could be both bought independently perhaps......one as a Resi.....the other as a stand alone BTL...........would still be tricky though.........
Buy it all as a buy to let?Sarnie said:
He wants to live in the top flat apparently..........and would still be two units on a single title....
Would it be doable if he didn't want to live in the top flat?Or the OP could do a deal whereby he pays the costs of splitting the title.
There must be loads of places with a granny flat attached?
desolate said:
Would it be doable if he didn't want to live in the top flat?
Or the OP could do a deal whereby he pays the costs of splitting the title.
There must be loads of places with a granny flat attached?
This doesn't sound like the usual granny flat though............it sounds like a single property divided into two entirely separate flats.......if the OP wasn't wanting to live in the property then it removes the Resi/BTL combination issue.......but it's still two properties on a single title.......I've seen a few of these and splitting the properties isn't always easy.....or cheap!Or the OP could do a deal whereby he pays the costs of splitting the title.
There must be loads of places with a granny flat attached?
desolate said:
Or the OP could do a deal whereby he pays the costs of splitting the title.
Not sure the seller has the appetite to do anything even though it would probably maximize price to sell as separate units to separate parties.Peculiarly in this instance, the total stamp duty would be reduced if the title were split, despite the 2nd property surcharge.
swatches said:
Not sure the seller has the appetite to do anything even though it would probably maximize price to sell as separate units to separate parties.
Peculiarly in this instance, the total stamp duty would be reduced if the title were split, despite the 2nd property surcharge.
In which case can't you recknsider your approach and utlise a BTl mortgage and consider living elsewhere for a period of time?Peculiarly in this instance, the total stamp duty would be reduced if the title were split, despite the 2nd property surcharge.
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