Has anyone got a mortgage for a house with an annexe?

[notsureconfused]

We've just put an offer on a 4 bed detached house with a 2 bed integral annexe (you can access the annexe through a shared conservatory). Our plan was to knock through asap creating one large 6 bed house. We need to get a small mortgage to complete the sale which we didn't think would be a problem so were surprised to learn that banks don't like annexes, particularly ones with their own kitchen. We've been advised to go through a broker as the mortgage company we approached couldn't think of another high street lender who would help. Has anyone had any experience of buying a house with an annexe or 2 kitchens? Is it unmortgagable? I'm waiting to hear back from a broker but would love to hear first hand experiences.

Yes, we bought a house that was mid-update and owner had built new kitchen but was using the original as a utility room . The issue in our case was insurance, as the company rated it as higher risk, higher expectation of more than one household etc. So no mortgage until insurance company agreed to sign off.
We had to agree to-remove the cooking appliances and make safe the connections within a month.
That’s not the same as an annex of course, but sounds like the same circumstance for you.

Yes I have.

We didn't have the problem to start with as we bought our house when the annexe was empty, If the annexe is untenanted then you should not have a problem as you don't need to mention it.

Then we let our annexe and the existing mortgage company (HSBC) approved it but when I then came to remortgage some years later it was a problem. The only reason I ever thought to tell the mortgage company we had let the annexe was due to insurance reasons. It is tricky to get insurance for a house with an annexe ( this is another problem we had)

After some work we found that Handels Banks would give us a mortgage and also metro bank. So try them.

Regards the insurance - normal lenders will not cover you with an annexe that is let. We have used NFU.

The whole house including the annexe is empty and we don't want to have tenants. As soon as we told the mortgage company that there was an annexe so the property has 2 kitchens, they said they wouldn't be able to offer a mortgage and we'd struggle finding anyone who could. They said once the valuation had been done and they'd seen the 2 kitchens, it would be automatically declined so we can't even just not mention the second kitchen or annexe unfortunately as the valuer would obviously see it for themselves.

That sounds weird - why do they not liked to lend to annexes? Is it because it seems like you're buying two homes for the price of one mortgage?

I would have thought the problematic issue of potential repossession is why banks would shy away. If the annexe is tenanted then any judge may not grant a possession order for an innocent tenant.

I got a mortgage and insurance no problem - they just asked me to confirm it wasn't for rental. Through a broker.... But wasn't raised as an issue..

Perhaps you should not use the word annexe......

With 2 kitchens you should also be paying 2 lots of council tax... is your annexe banded?

If you remove the 2nd kitchen your problem is solved however I appreciate you need to get a mortgage before you can do this!. I think you should just try another lender and not mention the word annexe. The valuer might not even visit the property to see the 2nd kitchen (or was is that only something that happened in the old days?)

Also, I would get a broker on the case to help you sift through all the possible lenders.

Use a broker. We don’t have an annexe but I know it’s an issue for many lenders.

Thanks everyone. I contacted a broker and she's found some options thank goodness. She also hinted that because our ltv is really low the lender would most likely do a desktop valuation so wouldn't even see the house anyway. Fingers crossed all goes smoothly now.

Presumably the lender will look at the house listing though, is the annexe detailed?

Sounds as though it shouldn’t be an issue anyway.

We bought a house with an annexe. No issue with mortgage but we do pay two lots of council tax.........

Hello - may I ask anyone on this thread who did get a mortgage with an annex who there lenders were? I've got a mortgage offer but didn't realise when I took it out that the extension of the house I'm buying is rated on different council tax to the main house as it has a separate kitchen. It was a desktop valuation and they didn't pick it up but I'm going to have to tell them I think and they don't lend on properties with annexes... unless they might if I promise to take out the second kitchen and get the council tax rebanded...

handels bank and metro bank were lenders who offered us mortgages.

I had exactly the same issue as you. We bought our house and had no idea that we needed to pay 2 sets of council tax. Only found out when the bills came through. If you are not planning as keeping it as an annexe then there is no need to tell them as it will not be an annexe but you will need to remove the kitchen in order to get the banding lifted.

Thanks @silverbubbles. Now realised that as the second kitchen is currently a shell with no cooking facilities, fridge etc and just a couple of units it’s not actually legally a kitchen and therefore the annex is not an annex and so long as I don’t put a kitchen in that should be fine. Relieved as it means we can apply to have the council tax band taken off, though might take the units out too just to be sure. And means I don’t need separate insurance as it’s connected by internal doors so can all go on one policy, so long as no kitchen is ever installed. Phew!

We just had an email from the mortgage underwriter asking what we were going to use the Annexe for... we aren't going to use it for anything - my DH may work in there sometimes if we get too loud in the house. But we've said storage and definitely won't be subletting it.
Never occurred to me this was a thing...

Hi - would you be kind enough to share who you got your mortgage through.
We’ve been looking for a mortgage on a property with an annex and it’s been an uphill struggle all the way.
Thanks

Hi - did you get any answers on who people got their mortgages through?
We’ve been looking for a mortgage on a property with an annex and it’s been an uphill struggle all the way.
Thanks

Hi - would you be kind enough to share who you got your mortgage through?
We’ve been looking for a mortgage on a property with an annex and it’s been an uphill struggle all the way.
Thanks

In the end we were offered a mortgage with nationwide through a broker but ultimately we pulled out of the purchase. We wanted to incorporate the annexe into the main house but it was just going to be too costly and complicated so we decided it wasn't for us.