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buying at auction-urgent finance

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24

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  • RedFraggle
    RedFraggle Posts: 1,309 Forumite
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    blenny123 wrote: »
    Redfraggle...I disagree. I have £149,700 locked up in my house value and 100k cash. I think what I am suggesting is feasible, I just need to unlock some of the £149,700 equity and have access to it within a 3 week timeframe. Hence bridging loan then remortgage to pay off bridging loan.

    Plus what G_M said


    Either way, without finance arranged by 29th Nov this is a non-starter
    Officially in a clique of idiots
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    blenny123 wrote: »
    Redfraggle...I disagree. I have £149,700 locked up in my house value and 100k cash. I think what I am suggesting is feasible, I just need to unlock some of the £149,700 equity and have access to it within a 3 week timeframe. Hence bridging loan then remortgage to pay off bridging loan.

    Bridging loan would appear to be the way to go.

    Get your own property on the market ASAP and get it sold. Then you'll get the additional stamp duty refunded. As well as giving you the funds to refurbish the new property.

    What's the likelihood of getting the property for £140k at the auction?
  • blenny123
    blenny123 Posts: 10 Forumite
    edited 19 November 2017 at 10:49PM
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    I agree, the £300 could be a problem for a remortgage but I can pay it off anytime if my mortgage broker advises. It is not an issue at the moment because a remortgage at this stage in a no-go....there is no lender in the country who can act that fast. This why I am looking at bridging or other source....does anyone know how long a bridging loan would take if using current mortgage free property as collateral.

    Re: stamp duty...I will have 36 months to move into new property which is why I am looking at 1 year for initial renovation stage.

    What's the likelihood of getting the property for £140k at the auction?.......slim to good. It is modern church and the guide is 75k but I have been told that they put that low figure on it because the auction house really do not know what it will go for. I would not be surprised to see it go for 180k. I tried to put a link to auction but site won'e let me.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    blenny123 wrote: »
    I tried to put a link to auction but site won't let me.
    You just need to obfuscate the link in some way - put in spaces or the like.
  • G_M
    G_M Posts: 51,977 Forumite
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    davidmcn wrote: »
    But bridging loans can be secured loans, so could be "on my current home" and/or "on my new purchase".
    OK, maybe I don't understand bridging loans.

    If a bridging loan is secured against a property, how is that different to a mortgage (other than perhaps the timeframe being 6 months rather than 25 years)?

    Does it not still require a Charge? And would the lender not still want a Valuation done? And all the other steps in a mortgage application?

    And if so, can it be arranged any faster than a 'mortgage'?
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    G_M wrote: »
    OK, maybe I don't understand bridging loans.

    If a bridging loan is secured against a property, how is that different to a mortgage (other than perhaps the timeframe being 6 months rather than 25 years)?

    Does it not still require a Charge? And would the lender not still want a Valuation done? And all the other steps in a mortgage application?

    And if so, can it be arranged any faster than a 'mortgage'?

    We're talking about commercial lending here (albeit there are houses involved), so comparisons with consumer residential mortgages probably don't go very far. Yes, it can be arranged much faster - bridging funders compete on speed of service. Yes, you need a charge to create the security. Yes, the lender will want a valuation of some sort. And generally the process will be similar to a standard secured lending transaction (e.g. lender will have separate solicitor representation).
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
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    What is the guide price of the auction property? I hope it isn't £140k? If it is I would suggest that you do some research into guide prices.
  • blenny123
    blenny123 Posts: 10 Forumite
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    As my post no 14 the guide is £75k but this is , I am to believe, an absolute lowest expected price. I was told and is expected to go well above. It is not a standard property that can be easily priced.
    JHWalter lot 10 if anyone's interested.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    https://www.jhwalter.co.uk/property/view/event-27359006

    You got a solicitor lined up to review the legal pack before the auction?
  • BrassicWoman
    BrassicWoman Posts: 3,202 Forumite
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    what is your income stream to service the debt until you sell one of the houses? Capital is all very well, but you need income.
    2021 GC £1365.71/ £2400
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