Can I get a loan to renovate a cottage in my parents’ garden?

A reader asks if they can register such a property as a separate dwelling

Q My parents own their house outright. In the garden there is a separate cottage that I would like to move into and renovate. Can I: (a) get a loan for the works; and (b) be able to eventually register it as a separate dwelling with my parents’ consent?
JG

A You could take out a personal loan to fund your renovations but you wouldn’t be able to take out a mortgage on the property because you don’t own it. A more sensible way of going about things would be first to establish whether your parents want to give you or sell you the cottage. If they don’t, it doesn’t make much sense to renovate it, especially if you have to take out a personal loan to pay for the work as they are much more expensive than mortgages.

If your parents do want you to have the cottage, you would be able to take out a mortgage on it. The money from the mortgage would be made available on the day that the transfer of ownership is completed. The cottage and any land that came with it would then be registered in your name at the Land Registry.