can we borrow to re-build a new house???

mkh60

hi, we are needing a little advice and information and hope some of you can help us out..
the situation is this:
we own our own house and what it stands on and we want/need to have it taken down and have 2 smaller houses built .one to live in the other sell on.. which means borrowing money?? (never done this before) so where do we start? who do we need to talk too in the 1st instance we have very little capital as in money really only the house as it stands and the land..
any help please :think:

Kavanne

Does your current house have a mortgage? Are you allowed to get a mortgage and then knock a property down? I am not sure... I am sure a mortgage advisor will be along to help.

How much do you want to borrow? How much is your current property worth (realistically)?

Robert_Sterling_3

First Step:-

Apply for outline planning permission before you knock your house down.

mkh60

no we dont have a mortage we paid for it in 1986, its worth about £175,000 as it stands (it needs some work doing on it to be honest) but thats a guestimate and we need to borrow about 100,000

out line planning permission good starting point thank you

Rafter

mkh60,

Sounds like you shouldn't have a problem raising the money given that the land alone is probably worth £100k+ as two building plots (if you can get planning permission).

You need to find a lender that does 'self build' mortgages probably. They will then release funds at each stage of the build: foundations - first floor - final fix - saves you borrowing money you don't need early on too.

Main thing (as a veteran viewer of grand designs) is to get an architect to draw up the plans and get a building contractor to manage it all.

Have you also considered a kit timber framed property? Might be easier and quicker given that presumably you are going to move into rented property of a static caravan once demolition starts? Potton are the largest company in the UK doing these I believe?

R.

mkh60

emm seems like a lot more to think about... :beer: but at the end of the day this house is going to cost us £1,000's to bring it into the 21 century..

deejossi

I'm glad someone has posted a thread about this sort of scenario, and I am bumping it back up. My mum and uncle have a similar situation, although, they inherited house with land on side and want to capitalise on this so they each gain a larger share of cash. Original house need around £10,000 spending on it to make it 'saleable' and then they want to release cash to build the new one next door. Mum doesn't work and uncle is out in Oz so I think a mortgage is out of the question, as is equity release as they aren't yet 55. Are there any sorts of loans that anyone knows about, that enables you to release cash on a house that has no outstanding mortgage? Sorry to hijack your thread mkh60, but it looks like we are researching the same thing?!