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simo

BTL then title split an annexe

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Hi there. I've had an offer accepted on a property that is constructed from no fines concrete. It also has an annexe similarly constructed in the garden. My chosen lender does not have an issue in principle with this construction method. The 2 storey detached annexe has its own separate pedestrian entrance and is part refurbished with a lounge area and wc and shower room upstairs, and the downstairs is a workshop and storage area. It's not rentable as a unit currently and does not have its own council tax bill. It shares water from the house, but has its own consumer unit for electricity. It could easily be completed of course but BTL lenders don't like outbuilding that can be let out. 

My issue is the finance and then potentially splitting the outbuilding off on a separate title. I can apply with the BTL  lender to see if they have an issue with the outbuilding and or the concrete blocks, but that would limit my options on splitting the land off later. We plan to let the house out and use the outbuilding as our own storage and occasional crash pad. The outbuilding is not rentable as is but could be made so. The valuers opinion will be crucial to my application.

 

The other option is to release some equity from another property and bridge with a view to split the title then refinance the house on a BTL mortgage later. Same potential issues could be a problem at that point with the BTL lender leaving me stuck on a bridging loan. But the bridge option will be easier to split the title. 

My income is low and only rental and Airbnb - so I can only use 2 btl lenders and I've got a loan with one of them. 

 

Any thoughts suggestions would be appreciated! Thanks Simon. 

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