Can I get a Mortgage on an Annex?

I sometimes get enquiries from people looking to buy a house with an annex. But getting a mortgage on a property with an annex is not always straight forward.

People usually look to buy a house with an annex either because they wish to support an elderly parent, give some independence and support to an adult child who cannot afford to buy their own home, or just somewhere for friends and family to stay over when they visit.

So what exactly is an annex?

An annex is usually where part of the house which is self-contained. It may have its own bath/shower room and even it's own kitchen or may use the facilities in the main part of the house. They often have their own front door. Some annexes are accessible from the main part of the house, others are not.

The risk factor for lenders is if the owner of the house lets out the annex to a tenant is that should the owner not pay the mortgage and the lender need to repossess the house, then they have a tenant to try and evict plus the owner would be breaking mortgage terms and conditions.

Sometimes this will be down to the lender policy. Sometimes It can often be down to the valuer to see if it looks & feels like it will be used my family/ friends or whether it feels more likely it could be let out, similar to having two semi-detached houses with a tenant living in one of them.

Providing good information on the house to the mortgage adviser is key on understanding how lenders may approach it.