mortgage in scotland/no kitchen?????

dreamsrsmashed

Someone must know where we can get a mortgage to buy a property -in rural area, previously a shop. Woolwich will give us a mortgage IF the property has workable bathroom and kitchen :rolleyes:- property has bathroom but no kitchen so no mortgage from woolwich. It will take half an afternoon to fit a kitchen sink, worktop and install calor gas cooker
Go to independant advisor who deals with self builds and rebuilds and he can't get us a mortgage because planning permission has not been granted for change of use. Local Planning officer can envisage no probs with change of use and neighbours say they will be glad to have property as house instead of run down empty building.
Present owner will charge a fortune more if they sell with planning permission.

Must be some firm out there that can help

Jacka87

This is not the useual type of question on here, interesting tho, anyway.

Can you not get a loan to buy the property as a business and then get planning etc and remortgage it and pay off the business loan?

How much realistically will the price go up if you speak to the current owner and ask them to get the planning permission based on you buying the property? If you explain the situation will they not be willing to be reasonable?

dreamsrsmashed

Thanks Jacka87,
This is where I now look stupid as I am still trying to work all this out.
Our advisor suggested this loan business with a commercial firm but I am dubious as to how we could manage a loan, the lending fee alone comes to 3,500 then there are surveyors and solicitors fees. then it would be around 960 a month in interest for each month we hold the loan. Planning takes approx 8weeks so we would be looking at around 3-4 months of commercial loan. Then we would have to mortgage to repay the loan and the interest - I think that the property will be worth more with the PP on it and then if we had tidied the place up without doing any alterations and building work it would look a lot better to anyone valueing it and the PP gives a better picture of what the property could be worth - am I right with this or not...
Then what if it is one of those planning requests that get refused how do we pay off the loan then???
Just looking for another opinion cos its difficult when you haven't done something like this before.

karie

hi

my boyfriend and i were looking at something similar but unfortunately it fell through. our property didn't have a kitchen either.

i rang up almost every high street bank / building society and they all want the property to be "habitable" and by habitable they mean with bathroom and kitchen.

i started looking at self-build but it seemed we couldnt get a self-build mortgage unless the property had been converted to residential use.

the seller then agreed that we could make an offer subject to successful planning permission for change of use (which we would apply for).

before we got that far it all went belly up anyway, but perhaps you could see if the seller would allow you to do something similar?

karie

Dan_1976

Standard lending is out the door unless it is habitable, nothing new there its just the way it is.

I remember a few commercial firms that would offer bridging for this, but in this market I am not so sure.

Any commercial lending will be pricey and you will need a good deposit. Once you have completed the work you can get the building signed off and remortgage as standard resi.

The risk are that your valuation is over priced and the lenders will not lend you enough to pay the commercial loan off.

Its more of a bridging loan than anything. So expensive.

Jacka87

If the property is really what you are looking for then it may be worth teh expense to try get a commercial loan and go down that route. If you do this and the planning permission doesnt work then you mayu just need to sell the property on and the chances are you will be out of pocket but if you get the property then you will be very happy.

The option of getting the seller to sell based on planning getting granted is probably the best option however you do have the expense of getting the planning application sorted, though thats all you lose if the deal all falls through.

The final thing I would say you need to consider is the property? Why are you thinking of buying a shop and converting to a home. Why not buy a house in the area. I think its likely you are looking at a shop and converting cos its a more cost friendly option for you at the moment, if thats the case then maybe you just have to include the cost of any bridging loans etc in your calculations, along with the renevation costs etc? If thats the case and this is a property you plan on investing in and making money from etc, make sure you do all the cals properly before you start.

shamac

I would approach the Ecology BS they ofetn lend on this type of thing.

Cazza

Ok, might work, might not, but....

You offer subject to planning permission. Once the offer is accepted, you apply for change of use. One that is granted, you apply for the mortgage and start the conveyanicng process. You ask Woolwich for a mortgage, with a FULL retention. Once you have the mortgage, you exchange contracts, with a nice 4 ish week break until completion. You then go in and fit a basic kitchen (as per your description). You call Woolwich, get the surveyor back out, who confirms there is now a kitchen, Wooldwich lift the rentention and you complete. Worth a try???

Cazza

Cazza wrote: »

Ok, might work, might not, but....

You offer subject to planning permission. Once the offer is accepted, you apply for change of use. One that is granted, you apply for the mortgage and start the conveyanicng process. You ask Woolwich for a mortgage, with a FULL retention. Once you have the mortgage, you exchange contracts, with a nice 4 ish week break until completion. You then go in and fit a basic kitchen (as per your description). You call Woolwich, get the surveyor back out, who confirms there is now a kitchen, Wooldwich lift the rentention and you complete. Worth a try???

Ooops, just realised this is in Scotland, so won't quite work in this way due to the Scottish system