buy to let mortgage needed

????????_24

A relative of mine inherited a derelict property. I agreed to purchase it for £150,000 but only when renovations were complete and the property therefore mortgageable. I have renovated the property and converted it into two dwellings using my own money and each property is now worth £150,000. I want a £75,000 (50%) buy to let mortgage on each property. The problem is that i am only purchasing for £150,000 and the lenders i have tried will only lend on the purchase price not the value until i have owned the property for 6 months. Does anyone know of any lender who could help me?

luckyfool

Ok, so you do not own the properties yet? They are still technically in your relative's name?

How close a relation is he/she? Father/Son/Brother? Or something more distant?

There are lenders that will go on open market value, but the above questions would be relevant.

Conrad

I've arranged similar with N Rock, C & G, Nat West and TMW, but as ever, cases like these are often a complex jigsaw, so there are many factors to resolve.

Are you buying with deposit as deed of gift where the current owners will retain no interest whatsoever?

????????_24

No, technically I don't own the property yet. It is a purchase from my cousin.

????????_24

It's not a deed of gift. I agreed the purchase price, the increase in value is down to the refurbishment & creating two properties

luckyfool

If it was a closer relative then a few lenders would have done it as a sale at under value, more difficult due to the "distance" of the relationship. Still think there should be an option or two there. Definitely there are lenders that would bridge on it with an exit route to remortgaging in 6 months (when standard lenders would lend on Open Market Value). Problem with bridging would be its very expensive (e.g. 1-1.6% per month plus setup fees etc). I would obviously recommend getting a decent broker to explore all the options for you and hopefully they would be able to source a standard lender that would take a gander. The fact that they are new build complicates things, but there is a deal to be done there.