Is it a good idea to buy a house next door, in your opinion?

If you’ve got the opportunity and it’s a good deal, then yes, it can be an excellent idea. Perhaps your family’s got bigger – and if you’ve got the funds, why not?

My advice is just to make sure you have all the planning before you do it. Speak to the council and confirm it’s doable before moving forward and committing to another mortgage or another house.

How straightforward is it to buy the house next door and knock through?

From a mortgage perspective, it’s moderately complex but manageable. But from a planning and more legal perspective, it’s harder still – you’d have to step into that on your own and find solicitors, builders and get the permission you need before you can move on.

But from our side as financial advisers, we can definitely help you there.

What are the pros and cons of buying the house next door to extend my home?

If you love the area you’re living in and you’re happy and comfortable there, you can gain a significant space without moving. You can create a bespoke house for your family or, if you’re looking for Buy to Let purposes, you’re getting good rental value there, doubling up what you previously made. It’s a safer investment, and you’re adding long-term value.

The downsides include planning permission, as we’ve spoken about – and that’s not guaranteed. You need to make sure you get that in place. On the construction, obviously, you’re working with contractors and surveyors, and you need to make sure all those costs add up before looking to buy next door.

Is it cheaper to extend than buy another house?

Usually, yes. But the space you’ll get may not be too significant compared to buying another house. And while extending would be cheaper, what’s the added value to your property? The added value when buying the house next door would be drastically more.

How can a mortgage adviser help here? Any final thoughts?

A mortgage adviser will identify the lenders that are comfortable with this knock-through situation. We’ll also confirm what the rate would be, so you can figure out your costs. We also liaise with solicitors and give you advice at every step of the process.

Key Takeaways:

• Use cash or a bridging loan for the initial purchase; lenders require the work to be completed before refinancing the two units into one mortgage.
• Not all lenders permit mortgages for buying and knocking through connected houses, so advice from a mortgage broker is necessary.
• Planning permission is essential for the change of use (two dwellings to one) and all structural/external work.
• You are liable for two sets of council tax and utility bills until the council formally recognises the property as a single dwelling.
• The process is legally and logistically complex, but it offers significant space gain and drastically greater added property value than a standard extension.
  
  

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.