Complicated problem - creating two seperate titles/consent-to-let/renting to family

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    Complicated problem - creating two seperate titles/consent-to-let/renting to family

    I have a somewhat complicated problem, not really sure which thread is best so Admin please move if necessary.

    The situation is: I am looking to buy a detached property that currently has a self-contained one bed annex attached to it. The plan is for my mother to live in the annex. She currently gets LHA and we would like this to continue when she moves to the annex otherwise we are unlikely to be able to afford the mortgage. I think we can get this through the LA because we don't technically speaking 'reside' in the same residence as it has its own entrance, no sharing of any part of the house etc. Basically we will have to rent it to someone anyway to be able to afford to live there. We intend for the annex to be registered to pay seperate council tax to the main part of the house.

    The most complicated part of it though is how the mortgage company will react, will I get/do I need a consent to let if I am living in the property covered by the mortgage? Should I/can I convert the annex into a leasehold maisonette and ask the mortgage lender to divide their charge over both titles? Very confused, help/advice much appreciated.

    #2
    1. Is any part of the main house above or below the annexe? If not then it can be transferred freehold.

    2. Unlikely a lender would lend on a house you live in + separate annexe rented out. You would need the title divided before you mortgaged (therefore probably at the point of purchase)

    3. Biggest obstacle likely to be planning. Most of these annexes are given planning permission with strict conditions requiring them to be occupied in conjunction with the main dwelling by a family member etc. If it is rented to her and she claims LHA and/or it is assessed separately for Council Tax then that would be taken as a sign of separate occupation so you would be likely to be considered in breach of applicable planning conditions.
    RICHARD WEBSTER

    As a conveyancing solicitor I believe the information given in the post to be useful (provided it relates to property in England & Wales) but I accept no liability except to fee-paying clients.

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      #3
      So the state pays for your mother so that you can afford a big house? Doesn't seem fair to me....
      Unshackled by the chains of idle vanity, A modest manatee, that's me

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        #4
        Originally posted by islandgirl View Post
        So the state pays for your mother so that you can afford a big house? Doesn't seem fair to me....
        As of January 2012 the state will pay just enough for my diabled mother to rent a small, probably damp (which makes her ill), one bed flat in a highly undesireable area (drugs, crime etc) because that is all that is available on the renting market where we live at LHA rates. They will have to pay the same amount to her wherever she lives. We are just trying to find a way for her to live closer to me because of her health problems, and in an area that is not going to make her worse. She is also trying to improve her health to be able to work and get off benefits but a move to cramped, damp accommodation is likely to actually set this back. The move is for her benefit, not ours and don't let the idea of a "big house" fool you into thinking we are moving into some kind of luxury residence, because believe me we are not. The property needs a lot of work doing and is only a higher price because it has a larger than average garden and is rural, the house itself isn't actually worth that much. We are trying many different options and trust me we would all prefer it if my mum could live in a place of her own that wasn't surrounded by drug dealers/takers but life is what it is, welcome to the Big Society.

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          #5
          You could buy a normal sized house with an extra bedroom and move her in with you - that is what many people do! Indeed a member of my husband's family has done just that with his parents. I fully understand that you wish to move her out of a terrible area - I would feel the same. I also admire her trying to get back to work and agree that she deserves support.
          I can only imagine you are somewhere in the vacinity of London? Can you move to a cheaper area (all of you?). Where is she living now? Can she not stay there? Can you not top up the rent?
          How about buying a very small place for her in a decent area and renting that to her? As long as rent etc is commercial LHA should be payable.
          Unshackled by the chains of idle vanity, A modest manatee, that's me

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