Can I get a mortgage on a property with an Annexe?

What is an Annexe?

Commonly referred to as a ‘Granny Annexe’, the term refers to additional accommodation either attached to the main dwelling or in the grounds of the main property.  Typically an Annexe will have a bedroom, living space, kitchen and bathroom.  In the UK there are over 30,000 annexes, and although they can be very desirable they can be hard to get a mortgage on.


Why has there been a boom in demand for Annexes?

  • A lot of individuals like the idea of buying a property with an Annexe, especially if you have elderly relatives who wish to live in the property and may require care. Buying a property with an Annexe can be more expensive however it may be more cost effective compared to putting a family member in to a nursing/residential home.
  • Since Covid and working from home has become more common, more & more people want to have a space where they can work but separate to their main home, free from home life distractions. Sometimes an Annexe can be the perfect answer.
  • It can also be a great solution for young adults who still live at home and who want a separate space where they can have their own independence.


Can I get a mortgage on a property which has an Annexe?

Yes, there are lenders who will offer a mortgage on  properties with an Annexe, however they usually insist on the following:

  • The property and the Annexe should be on the same title and share the same address
  • The main property and Annexe should be habitable
  • The Annexe should be for personal / family use, rather than being let for commercial gain (such as Air BnB)
  • The utilities and council tax should be shared with the main dwelling
  • There should be an interconnecting door between the Annexe and the main building

If a property doesn’t tick all these boxes it might still be possible, but the number of available lenders would be reduced, so it’s important to take advice.

Before making an offer on a property with an Annexe it’s always a good idea to speak to an independent mortgage adviser.  We’re happy to help, so feel free to  Get in touch and we’ll talk you through your options.  Or sign up to our monthly newsletter, to keep your finger on the pulse. 


Will Sproule – 29th June 2022

Will Headshot