If you are planning to buy a property with an annexe, you might find that there are unique considerations to bear in mind when it comes to financing. An annexe can offer a number of benefits such as extra living space and potential rental income, but a traditional mortgage may not suit such properties. This is where mortgages for properties with annexes come in. Take a look at how these mortgages work, the requirements and more below.
Can I Get A Mortgage For A Property With An Annexe UK?
Yes, it is possible to get a mortgage for a property with an annexe in the UK, yet there are specific factors that will be used to assess your eligibility. An annexe can come in various forms ranging from self-contained units with separate entrances to smaller attached areas. If you are unsure as to whether your property has an annexe, it is worth consulting your estate agent or mortgage broker in order to confirm which mortgage option would work best. Lenders will generally evaluate the nature of the annexe, its purpose, and impact on your property’s value.
What Are The Mortgage Requirements For Properties With Annexes?
Despite their differences, mortgages for properties with annexes have similar requirements to standard mortgages. There are, however, a few key differences that borrowers should be aware of before starting their mortgage application. Lenders will typically consider the following:
Valuation: The property’s overall value, including the annexe, will be considered and may impact the mortgage terms.
Purpose: Lenders will also want confirmation of the intended use of the annexe, for instance whether it is for personal use or to let out on Airbnb.
Regulations: It is worth noting that the annexe should comply with local regulations and have the necessary planning permissions in place.
Legal Status: An important consideration will be the legal status of the annexe. Lenders will normally want to see the annexe is not on a separate title and also shares utilities with the main building.
Can First-Time Buyers Get A Mortgage For A Property With An Annexe?
Yes, it is possible for first-time buyers to get a mortgage for properties with an annexe. The key for securing such a mortgage is to ensure that both the property and the annexe meet the lender’s requirements. For instance, some lenders might consider properties with granny annexes or other accommodation types within the agreement. At Magni Finance, we work with a range of specialist lenders which allows us to obtain some of the most competitive finance solutions currently available. As a first-time buyer, by providing all the necessary information and documentation that is asked will help the process run smoothly.
What Annexes Might Not Be Covered By A Mortgage?
It is important that potential mortgage applicants be aware that some annexes might not be suitable. For example, if an annexe does not have the necessary planning permissions, it is unlikely to be approved for a mortgage. Equally, if the annexe has its own entrance, additional amenities such as a kitchen or bathroom or is on a separate title, this may impact its eligibility for certain mortgages. Most UK lenders will have stricter criteria for properties with an annexe, but terms can vary from lender to lender so it is better to double check this before signing your agreement. For more information on the types of annexes that will be accepted, feel free to get in touch with the Magni Finance team today where we can advise you further.
How To Get A Mortgage For Properties With An Annexe?
If a mortgage for a property with an annexe could work for your personal circumstances, you will first need to find a reliable UK mortgage lender. Ideally, you might find a lender that has experience with properties featuring annexes. Once a lender has been chosen, you can get started gathering documentation so the application can process at speed. Necessary documentation might include property details, legal documents, and planning permissions.
A mortgage lender will also ask for details of your financial situation such as your income, expenses, and any potential rental income, so it is important to have all this information to hand. A mortgage calculator could be useful for working out your specific finance requirements at this stage. You will then be ready to submit your application to the chosen lender and wait for approval. Upon receiving a mortgage offer, be sure to review the terms carefully before proceeding to ensure everything aligns with your needs.
Apply For A Mortgage With Magni Finance
In order to access a mortgage for properties with annexes, get started on your Magni Finance mortgage application today. With over a decade of finance experience, our team of highly skilled mortgage brokers are dedicated to finding the best solutions for our clients, regardless of their personal circumstances. Plus, we can provide alternative services such as FX specialists, solicitors, and specialist tax advisors, to help wherever needed.
For further information about UK mortgages for properties with annexes, feel free to contact the team today where we’ll be more than happy to discuss your options and guide you through the application process. Get in touch today.