Want a property that has an annexe attached; anyone know, would lenders lend us more if we're renting out the annexe?

[HonoriaGlossop]

Title says it all really, have fallen in LOVE with a lovely house, can't afford the mortgage on our salary, however the place has an annexe attached (but seperate entrances, etc so would be easily lettable) i reckon it would let out for about £500 a month.

Would anyone know whether we'd be lent more on this basis? TIA. Just can't be bothered with phoning mortgage companies and sitting on the phone for an hour when it's possible you knowledgable people will be able to set me right

You could probably get a mortgage company to include this in their considerations but the problem then is that they would probasbly quote you on a buy-to-let basis for the whole of the mortgage which is not good as it would then be at a more expensive rate. Also if you have anythign formal that recognises this annexe as being 'seperate' in this way, you may run into Capital Gains Tax issues further down the line and end up paying tax on any gains you make when selling the house. I would instead seek out a mortgage company willing to lend on a higher multiple. A mortgage broker could point you in the right direction but if your credit record is good it might be worth having an informal chat wioth your bank mgr to see what in-house mortgage options might be available....

oh thanks squiffy. OK, i will look into the higher multiple thing; sounds the best option! Thanks again.

Is the annexe allowed to be rented out separately? It's worth checking to make sure there aren't any planning conditions that would require it to only be used by a relation i.e. like a granny annexe and not let out commercially.