Separate Folio Number for Grannyflat to get mortgage?

We have been approved in principal for a mortgage topup with the condition that we have a Separate Folio Number for Granny flat attached to house as we said that we would be getting 500 per month for it.

According to planning the granny flat is considered part of the residence and doesn't have planning to be comercially used.

Im afraid that we might only have one folio number for the whole house and won't get the mortgage.

Has anyone ran into this and if so, is it an easy process to separate the two folios to comply with the condition or is it something that can't be done.

I'd appreciate any answers at this stage as we have told the builder to start and were confident we had the approval for the mortgage.

It is very easy to get a separate folio, get an engineer to mark it off on a seperate map and certify the area and it is a simple application to the land registry for a new folio.

Dear Vanilla,

Thanks so much for the speedy response. That's reassuring.

You are welcome. The bank can simply put it as a special condition in the loan offer and your solicitor can make the application at the same time they are registering the mortgage as a charge on the new folio.

I just spoke with my solicitor who said that the property has only one folio number as it's considered all the one, so according to her it can't be done. I'm really confused about this now as after getting your response and also discussing it with an engineer I thought it was do-able.

Yes, its possible to get a separate folio number but I gather that that is not in fact what the real issue is.
I suspect that the bank want the granny flat to be sort of "stand alone" but that thats not possible given the planning restrictions.

mf

My own house has a self contained apartment at the side of it.It has its own front door and rear door.My planning permission states that that it has to be used as part of the main house and cannot be rented or used for commercial purposes.The banks will not accept it as a rental property due to the planning permission not allowing it.I also work in the building trade and all extension / granny flats I have done in the past are subject to similar planning terms.

There is a loophole in planning regs where if the building is over 7 years ( i think) you can apply for a change of usage for the building.To the best of my knowledge , and please correct me if i'm wrong , a folio number refers only to planning documentation .It is land registry that the banks are mainly concerned with.

You can show the bank that you intend to rent one room of your house out, and they will accept this as part of income proposal.They will not be concerned as to which room in particular you're lodger stays in.

Thanks for that Carjo.

The broker is meeting with the lender early next week and explaining that we can't meet this condition.

Hopefully he will give us the mortgage based on our income alone.

Although, the fact that he is aware that we have a granny flat, might now complicate things.

Keep your fingers crossed for us. We are running out of options.

I will update you when I hear.

Thanks again for the clarification and advice!

Yes MF1,

It looks like they want it to be 'stand alone' which technically isn't possible as it's part of the house (converted garage).

I'm hoping they will drop this condition.

Nervous about it all.