Options of funding a self build with existing dwelling under same plot

[Barn Becs]

Hi,

 

My husband and I are looking for funding to convert our barn into a bigger family home.  We already have planning.  The cottage we live in now is on the same plot/under the same title and has a covenant on it to stop us splitting the plot up.  We are assuming the trust that placed the covenant on it when it was sold to us would want a pay out if we were to have it removed so we want to avoid that.  

 

We could borrow against the cottage, but it won't give us enough funds to complete the barn project.

 

Any suggestions? 

 

[Russell griffiths]

How about borrow as much as you can against the cottage, then buy a mobile home move out of the cottage and turn it into a holiday let, will give a good income for the future. 

[Barn Becs]

Thanks, yes that had crossed our mind as an option if nothing else comes up.

 

I think this single title thing is going to become an issue as I am also wondering if we won't be able to get reduced VAT on the build because of it too.

 

[Russell griffiths]

Look at getting it removed, a lot of covenants are easy enough to remove.