Unusual Property With Annexe

Location: Wheatley, Oxfordshire

Loan Amount: £574,000

Finance Category: Residential Mortgage

The Story

A client contacted us as we are specialist holiday mortgage brokers.

They had been let down by their current mortgage broker who had taken an incredible seven months and two failed applications to lenders to secure a holiday let mortgage.

The client was servicing a bridging loan on the property which was very expensive and it meant they were not making any profit from their holiday lettings on the property.

The Challenge

The reasons that this case was failing with other lenders was since the clients had previously lived in the property this can make it a regulated mortgage contract.

The other issue was that the clients now lived in an attached annexe to the holiday let and as of yet the titles had not been split.

In addition, the property was let on an Airbnb basis.

The Solution

As a specialist holiday let mortgage broker, we must sometimes use specialist commercial mortgage lenders as not all solutions come from the vanilla holiday let mortgage lenders that many brokers will only have access to.

This was one of those cases that needed a lender that looks at each application on a case-by-case basis and tries to find a solution.

We immediately spoke to two lenders that we knew would want to lend as the property was fantastic and there was already over 12 months of letting history and furthermore the clients had a good income outside of the property and they were experienced landlords with other properties in their portfolio.

What we proposed was that on the day of completion the client’s own solicitor would split the tile of the annexe and the house.

He would ensure the main house has rights of access over the shared driveway and this gave our lender suitable security.

A loan of 70% loan to value was agreed and we were able to reduce the clients’ monthly payments down from £4,012 on the bridging loan to £ 2,052 on the holiday let mortgage.


Fox Davidson

Fox Davidson are a specialist holiday let mortgage broker including holiday let mortgages for Airbnb properties.

We have offices in Bristol, London and across the South West.

Email enquiry@foxdavidson.co.uk or call us on 0117 989 7950 to discuss your holiday let mortgage options.