Holiday let mortgage
Posted: Sun Jul 30, 2017 1:45 pm
This is a hypothetical issue, but something that might happen.
If I bought a holiday let which was a main house and a studio, with 2 sets of council tax being paid but on one title, would it be possible to live in the studio and rent out just the main house? Especially if the income from the main house was 125% of the mortgage payments.
Or, if there was an outbuilding in the grounds of a holiday let I bought which I then converted to a habitable space, could I live in it? I asked a mortgage broker this one and he had no idea. It would seem to me that the mortgage company would be lending on the existing property, not the potential property. However, in that scenario I would be on the electoral roll of my holiday let as it would be the same address. I am guessing this is the only way they can check if you are living in your holiday cottage, so they would think I was living in the property that has the mortgage on it.
One more question! Have any of you had a problem getting a residential mortgage on a property with an annexe? Thanks!
If I bought a holiday let which was a main house and a studio, with 2 sets of council tax being paid but on one title, would it be possible to live in the studio and rent out just the main house? Especially if the income from the main house was 125% of the mortgage payments.
Or, if there was an outbuilding in the grounds of a holiday let I bought which I then converted to a habitable space, could I live in it? I asked a mortgage broker this one and he had no idea. It would seem to me that the mortgage company would be lending on the existing property, not the potential property. However, in that scenario I would be on the electoral roll of my holiday let as it would be the same address. I am guessing this is the only way they can check if you are living in your holiday cottage, so they would think I was living in the property that has the mortgage on it.
One more question! Have any of you had a problem getting a residential mortgage on a property with an annexe? Thanks!