How to mortgage the un-mortgable-able

cem

Hi all,

I am looking at a massionate with 2 kitchens in requirement of cosmetic touching up, which makes it fail lending criteria for every lender at the moment.

My question is kind of two fold:

* Is it possible to get a refurb mortgage on this instead of a traditional residential or buy to let? . So idea is, borrow a little, remove one kitchen + cosmetic touching up. then borrow remaining (Obviously I have never done a refurb before :rolleyes2 )

*Is this scenario possible:

• I have a valuation done.
• Valuation fails, reason: 2 kitchens and crap condition inside.
• In addition to the above, can valuer put on his/her report that they will lend IF the above was changed? (so in affect, have in writing what could be changed to have the property pass the lender's lending criteria)

Many thanks in advance for your guidance/opinions/experiences

arkie

What is stopping you at the moment is the 2nd kitchen, lenders do not like it, get rid of the 2nd kitchen then start again.
No such thing as a refurb mortgage

minimike2

CHL used to lend on these, but to be honest I dont know if they are still lending or not as I havent needed to use them this year.

sdooley

When you say 'borrow a little' are you talking sub-£30K? If so, your best bet would be to get a personal loan over 5-8 years.

Why was there a second kitchen in the first place? Can you split it into 2 mini-flats?

cem

Ah I should have been more clearer, I do not own the property (yet) and it is one I would like to buy hence the second question above.(Sorry guys!)


Because if the second is possible, could do an open bridge for 2 weeks, get the kitchen removed + cosmetic touching up then get a mortgage to refund open bridge

Conrad

CEM

I know of one lender that will lend up to 70% on this. They are actually a small private lender. They are there for these cases, and know you will do the refurb and look to remortgage to a better rate asap, hence the rate is high - about 11 - 12%.
They will also charge an exit fee of about 2 or 3 months payments when you redeem early on.

The most important factor for them is that there is a clearly defined exit route.

They personaly visit every property they lend on for which there is a £500 charge, refunded when you complete.

cem

Thanks Conrad - Unfortunately 70% LTV is too high for me.

Do you think the other side is possible though. To have in writing from valuers on their vluation report what would make the property pass their lending criteria when they fail a valuation? i.e remove 1 kitchen+cosmetic touch up.

luckyfool

cem wrote: »

Thanks Conrad - Unfortunately 70% LTV is too high for me.

Do you think the other side is possible though. To have in writing from valuers on their vluation report what would make the property pass their lending criteria when they fail a valuation? i.e remove 1 kitchen+cosmetic touch up.

70% ltv is too high for you? Do you mean you need to borrow more than 70% of the value?

cem

Do you mean you need to borrow more than 70% of the value?


yes exactly..Ideally can get a 10% depsoit (15% if I really stretch) so 90% LTV would ideal.

Gangstabird

The company loaning you the money may make a demand on exchange that monies for the works to be completed are also available and they are done before you complete.

Sounds like you should walk away to me to be honest

cem

Gangsta - not sure I understand what you mean from that (possibly..loan company may demand money back before the work is done?)

The loan will be arranged as a 3 weeks loan in which the work will be done, followed by revaluation then remortgage which will pay back the loan money.

Although my question still stands...(c'mon guys)...

Is it possible...

To have in writing from valuers on their valuation report what would make the property pass their lending criteria when they fail a valuation? i.e remove 1 kitchen+cosmetic touch up.