Posted on 2 June 2012 by b
Is it correct that most lenders won't currently lend on a property with a separate annexe used as a home office or similar? Or would that only apply to a holiday let or an annexe with kitchen/wc etc? our prospective purchasers say they've been turned down for a mortgage on our property for this reason, and we think maybe we need to get change of use back to just 'ancillary accommodation' rather than a home office as it currently is. So annoying! We thought it would be an added extra but turns out it's a disadvantage to have an annexe.
This is a very interesting question because it highlights the differences between lenders. It sounds like your purchasers unfortunately chose one of the large number who have an issue with properties that have an annexe. Their worry seems to stem from a belief that it will be difficult to get vacant possession because the annexe will be occupied by a third party who is not bound by the mortgage conditions.
Having an annexe is not particularly uncommon, especially with larger properties and there are lenders who will offer mortgages on these. A lot will depend on what the lenders' valuer has to say about the annexe and also on what your purchasers tell the lender they intend to do with the building. If they say they are intending to let it out this will deter most lenders, if they say it will be used for work it will depend on the type of work carried out, the anticipated footfall and whether any noxious substances will be stored. A home office should not cause any undue worry on the lender's part and I do not think it is worth you changing the use.
I believe we can help your purchasers secure a mortgage and it may pay you to suggest they give us a call on 0344 346 3672.
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