Mortgage for a Log Cabin

Staciep88

Hiya,

I have moved on from the caravan idea onto a log cabbin as permenant accomodation, I have found a company near by that makes them but am looking for a company that will offer me a mortgage on this type of thing, I know there are companies out there, anyone know?

Thanks

pawpurrs

Some lenders will, normally those Ethical and Eco ones, proberbly like the Ecology Building society.

lincroft1710

I thought a log cabin was classed as a "chattel", and therefore you couldn't get a mortgage. You can probably get a finance deal. I would check with manufacturer.

guppy

Is it permanently fixed to the ground or can it be dismantled and taken away?

lostinrates

Ithink your issue with the land ownership might cause some issues though?

SquatNow

How much is the log cabin? Anything under 10k and you should be able to get an unsecured personal loan to cover it.

Motgages, while they appear to be on houses, are effectively on the land on which they stand, which makes up most of the price of a house.

So you could use a mortgage to buy the land and a personal loan to pay for the cabin.

HelpWhereIcan

There are lenders who will finance a timber/log property (actually no less durable than a bricks & mortar property) but they will want to know a couple of things:

1. That the property is built on a 'proper' foundation and not (like one I had an enquiry for) basically chained to the ground. They want to know that it is a permanent structure, built to an appropriate standard and within building regs. Most are and easily fulfill the requirement for proper insulation etc.

2. That there are no restrictions on the use of the property. The problem most of these properties have is the fact that your use is sometimes restricted to 11 months of the year. I had an enquiry for one where you could not stay over-night in February. They are looking to make sure that the property has a reasonable resaleability and will not look at anything where there is restricted use.

Hope this helps

Apologies for cutting & pasting my reply to a previous topic

lostinrates

HelpWhereIcan wrote: »

There are lenders who will finance a timber/log property (actually no less durable than a bricks & mortar property) but they will want to know a couple of things:

1. That the property is built on a 'proper' foundation and not (like one I had an enquiry for) basically chained to the ground. They want to know that it is a permanent structure, built to an appropriate standard and within building regs. Most are and easily fulfill the requirement for proper insulation etc.

2. That there are no restrictions on the use of the property. The problem most of these properties have is the fact that your use is sometimes restricted to 11 months of the year. I had an enquiry for one where you could not stay over-night in February. They are looking to make sure that the property has a reasonable resaleability and will not look at anything where there is restricted use.

Hope this helps

Apologies for cutting & pasting my reply to a previous topic

The OP doesn't own the land though, IIRC, her OH's parents are willing to let thm live there but not give OP ownership to the land. That must impact on mortgagabilty for this, no? sorry if I got it wrong OP.

SquatNow

If they don't have land costs why do they need a mortgage? Surely they could cover the cost with an unsecured personal loan?

HelpWhereIcan

lostinrates wrote: »

The OP doesn't own the land though, IIRC, her OH's parents are willing to let thm live there but not give OP ownership to the land. That must impact on mortgagabilty for this, no? sorry if I got it wrong OP.

If they do not own the land then the OP will need to find another way to arrange the borrowing - personal loan etc.

However, if the parents own the land they may be able to split it into two plots with the OP and parents being named on the mortgage and deeds jointly.

THe lender would normally require the log home to be on a property with its own freehold title - although a lender given the full facts may agree to a leasehold.

Owned as tenants in common, the parents could arrange ownership to be heavily in their favour - in theory 99% to 1%. This would obviously depend on the parents being willing (and able) to be included on the mortgage.

From what you have posted, the OP and parents obviously need some independent legal and financial advice - possibly to include advice on IHT planning.

Staciep88

The Log Cabin is £77,814.60, so it really would need to be a mortgage. FIL doesnt want any money for the land and wants to keep it in his name, maybe we should offer him £5k (for example) to buy it and then there would be no issues. I would rather build a house but I cannot weigh up the two:

Log Cabin: £77,814.60 - inc: everything: http://www.devonpinelodges.co.uk/pages/naturals/naturals.htm

Building a house: £50,000.00 + furnishing - Thats a rough guess - FIL is a builder and OH is a plasterer so it should only be material to pay for. My parents own a quarry so alot of the material is here and ready to use.

What to you recon?