Remortgage of house to build "granny flat" in back garden

[SouthDub]

Hi all,

hopefully posting this in the correct thread. Just looking for some advice or for someone to tell me my head is in the clouds and forget it

Basically, Father, late 50s passed away about a year ago leaving behind mortgage of about 20k. Repayments of about 160 per month. No mortgage protection so still has to be paid by my mother who does not work due to a long term illness. She pays it just fine and i give her a helping hand when I can.

I'm currently renting which is a killer. Is it feasible for me to take over the mortgage from my mother, then remortgage the house to finance the building of a separate dwelling on site. I have a partner and young so we'd rather build something than just move in as it would be crowded enough and we are planning to have more children down the line. My own finances are fairly ok in terms of savings and salary but I am a long way off the 50-60k or so needed to build plus refurbish the existing house.

Is this something a bank would even go for or am i living on a different planet?

any help appreciated

 

[Thirsty]

Easiest solution is for your mother to sell the house to you at market value and buy another property for herself if that's what she wants. Anything more complicated than that is just asking for trouble.

Although anecdotally I'm hearing of people building garden rooms and using them as separate dwellings they do not have and will not get planning permission.

 

[SouthDub]

House that backs on to hers has just built out the back which is where she got the idea from. They got planning permission for the structure but not for the use i believe it will be used for which is their daughter living there. It's slightly bigger than what i would consider a garden room to be.

 

[Monbretia]

Putting aside the issue of planning permission for the new dwelling you wouldn't be able to remortgage her house unless your name is put on the deeds, if she is remaining on them as well which would be wise she is going to have to be party to the mortgage too. Bank would probably prefer to finance the new house but if you are short savings for their requirements for that then that's an issue too and obviously all the planning/legal stuff would have to be 100% before they would give a mortgage on the new one.

Is the existing site big enough to split in two properly for both dwellings? My uncle did this years ago but sold the original house to finance the building of the second one. You are looking to release equity on a house you don't own (which can't happen) or best case scenario it's transferred to you with a right of residence for your mother which again bank might not like or it's in joint names, none of them is a great plan unfortunately.

 

[Thirsty]

They got planning permission for the structure but not for the use

Which means, effectively, they don't have planning and could well be told to remove it. I can see county councils esp in urban areas taking action on these.

 

[SouthDub]

Very hard for Council to prove that it’s not being used for purposes set out in planning permission. It’s built to the agreed specs so won’t get any hassle from neighbors etc. If anything I can see councils being a bit more lenient anyway. We’ve already seen this with talk about log cabins in back gardens etc. I wouldn’t be up for doing anything that would be torn down anyway. Won’t get planning permission if I say it’s for someone to live in so Options look limited anyway so may well be renting for another few years.

 

[Leo]

Very hard for Council to prove that it’s not being used for purposes set out in planning permission.

It's actually very easy to determine what is set up as habitable space versus a garden room.

then remortgage the house to finance the building of a separate dwelling on site.

To obtain planning for a granny flat, the flat must be part of, or physically connected to the main building. Building a completely separate structure is a much more difficult prospect and involves greater demands in terms of separation of utilities and remaining garden space.

Many of the log cabin structures won't meet minimum requirements of the building regs., so are really only expensive sheds.