# Building on to 'Granny Flat'



## DJF (18 Apr 2010)

Hi

My girlfriend and myself are in the initial stages of planning to build a new house which will be attached to her grandfathers existing two bedroom bungalow, effectively forming a 'granny flat' arrangement.

The existing property is currently in my girlfriends grandfathers name. Am I correct in saying that the deeds to the existing property will need to be signed over to my girlfriend as well as the adjacent site, in order to get a mortgage for the build? Also are there any tax implications by doing this?

Also I am currently working in the uk as a result of the recession, commuting weekly. Can anyone advise if this will be an issue when it comes to getting a mortgage, ie. earning my money outside of the state? 

Thanks in advance for any assistance..


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## onq (19 Apr 2010)

Granny flats usually contain a special condition restricting the property to be used by members of the immediate family, which in turn may seriously affect sell-on at a later date unless rectified.
Building on someone else's land is a no-no, but transfer to a separate folio may effectively be prevented by the condition wording, so you need to take expert advice on this.

ONQ.

[broken link removed]

All advice on AAM is remote from the situation and cannot be relied upon   as a defence or support - in and of itself - should legal action be   taken.
Competent legal and building professionals should be asked to advise in   Real Life with rights to inspect and issue reports on the matters at   hand.


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## DBK100 (19 Apr 2010)

onq said:


> Granny flats usually contain a special condition restricting the property to be used by members of the immediate family, which in turn may seriously affect sell-on at a later date unless rectified.
> Building on someone else's land is a no-no, but transfer to a separate folio may effectively be prevented by the condition wording, so you need to take expert advice on this.
> 
> ONQ.
> ...



+1
(Except from my experience I would substitute _Always_ for _Usually_).


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## onq (20 Apr 2010)

Fair comment DBK100, but you know me, I'll leave a little wiggle room for the exception to the rule.

Its amazing how many people are thinking of building on "family-owned" land, not realising the legal Gordian Knots they'll face when it comes to sell on.

Perhaps one of the legal heads to draw up a FAQ on it, because its a pitfall one might enter into in good faith, not knowing the perils ahead if title and succession are disputed, or some manipulative parent fails to grant each descendant proper title in the will - "to keep the family together" or "to keep the land in the family".

ONQ.

[broken link removed]

All advice on AAM is remote from the situation and cannot be relied upon    as a defence or support - in and of itself - should legal action be    taken.
Competent legal and building professionals should be asked to advise in    Real Life with rights to inspect and issue reports on the matters at    hand.


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## DJF (25 Apr 2010)

Thanks for your response. 

We have no intention of ever selling the property, I am starting to seek expert advise on the matter and how best to handle it, as I write this.


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## onq (25 Apr 2010)

DJF,

You probably have no intention of ever splitting up with your girlfriend, but these things happen.
My apologies for the shower of cold water I am about to dump over you both.
But, to be blunt about it, you are walking into a potential minefield.

The institution of marriage was created in part to address rights of property and succession.
But succession rights are a whole minefield to themselves and if there are other family members, you need to get ownership, garden plot and access rights sorted BEFORE you build anything.
Also, unless your girlfriend is the sole inheritor of the land and marries you, you may have little comeback if you split up down the line, she is left in occupation of the house and you have no way to get your money out of it.

In summary,


 Build only on land you own.
Don't build on land you don't  own
 Don't build on land your girlfriend owns
Don't  build on land your girlfriend doesn't own
Don't build on land  your girlfriend's grandfather owns
I am not being malicious or bad-minded, I am saying this for the good of all parties concerned.

ONQ.

[broken link removed]

All advice on AAM is remote from the situation and cannot be relied upon     as a defence or support - in and of itself - should legal action be     taken.
Competent legal and building professionals should be asked to advise in     Real Life with rights to inspect and issue reports on the matters at     hand.


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