Buying a fire damaged repo

0writer

Hi,

I'm hoping someone may be able to shed some light on this for me, will a mortgage company offer mortgages on a fire damaged repo? The damage is to the roof. The work required is potentially a new roof and work to the upper floor. Structurally is sound.

Thanks,
0writer

hethmar

Why do you want to buy this property with all that work to do? The mortgage lenders will no doubt want you to pay for all the structural work and will lend accordingly. (needing a new roof means its not structurally sound).

Cant you look at places that dont need all this worry - there are plenty about.

0writer

Thanks for the reply. The level of work required doesn't put me off, my dad's a retired property developer so taking on something like this is not a worry.

The advantage is, before the crunch the buyers paid over £500k for it. The current price is very attractive, even with the work needed doing.

I have the funds for the work I just simply am unsure whether a bank would give a mortgage on it in the current condition the property is in.

hethmar

You may find they will but will withold the money until the structural works have been completed. Best thing is to go to a broker and ask them. Good luck.

GDB2222

I would budget for removing all plaster in the building, basically taking it back to the brickwork. May have to replace much of the wood as well. (Speaking from personal experience here. Our house was still standing after the fire, but the smoke gets engrained into the fabric. In the end it was more effective to knock it down and rebuild.)

There are new-build mortgages, that pay out in stages as the work is completed. A bit for the land to begin with, and so on. Maybe something like that?

PasturesNew

0writer wrote: »

my dad's a retired property developer

People like that use a different type of mortgage to "the man on the street", it might be worthwhile finding out if your dad can raise the money and sell it to you at cost once the work's done.

Just another way of looking at skinning the cat.