Mortgage Secured for a Multi-Generational Home with Two Annexes
Background
Our clients had an offer accepted on a £775,000 property in North Wales comprising a main house and two annexes, all held under a single title.
The plan was for the clients to live in the main house, while their parents occupied the two annexes, giving everyone independent living space while remaining close by.
The purchase was supported by a £150,000 deposit from the sale of the clients' previous property, alongside a gifted contribution from the parents.
The clients also wanted the flexibility to split the title deeds in the future and remortgage onto more traditional mortgage products.
The Challenge
Although the loan required was only £230,000, the property didn't fit standard lending criteria.
The complexities included:
Two annexes on one title.
Separate council tax registrations.
Shared utility supplies.
A gifted deposit from the parents.
A Deed of Trust to protect the parents' financial contribution.
Future plans to split the title.
Many mainstream lenders would struggle with this type of application, making lender selection critical from the outset.
The Solution
We reviewed lenders that specialise in complex residential cases and identified options that could accommodate the property's layout and the family's circumstances.
One lender was prepared to ignore the parents' ages for affordability purposes, as their income wasn't needed, while another offered a bespoke mortgage product with no upfront fees and a free valuation.
By matching the case to lenders with the right criteria, we secured a Decision in Principle and progressed the purchase with confidence.
The Outcome
The clients were able to move forward with the purchase of their multi-generational home, knowing the finance was structured around both their immediate needs and their future plans.
Rather than forcing the case into standard lending criteria, we found a lender that understood the property and the family's long-term objectives.
Complex properties don't always need complicated solutions—they just need the right lender.
