Investment opportunity that the banks won't touch

timmo81

Trollfever wrote: »

Put it up for auction and let somebody else take the risk/profit.

If we can't secure funding for it then this will happen. However we will not be the beneficiaries. The beneficiaries haven't seen it and have agreed the price as they aren't interested. At auction it'd go for minimum £60,000 in the state its in. Its a bargain basically and would gof or practically double after development has sea and mountain views etc. Its difficult to just let someone else take the profit as offers like this don't fall in peoples laps everyday. Just need to secure the funding.

GDB2222

As I understand it, the property is currently held by Uncle's executors, pending sale. You are being offered it for £42k, which I take it is about the correct price for it in its current condition. is that right?

Have you asked the executors whether they will fund the property whilst you do the work, ie some sort of joint venture? It could be a better deal for the executors and their beneficiaries than selling it as it is, whilst a lot less risky for you than trying to borrow the money (always assuming that you could find a lender).

timmo81

GDB2222 wrote: »

As I understand it, the property is currently held by Uncle's executors, pending sale. You are being offered it for £42k, which I take it is about the correct price for it in its current condition. is that right?

Have you asked the executors whether they will fund the property whilst you do the work, ie some sort of joint venture? It could be a better deal for the executors and their beneficiaries than selling it as it is, whilst a lot less risky for you than trying to borrow the money (always assuming that you could find a lender).

Estate agents valuations on the property in its current state was £60 -79,000.

Fire_Fox

Just because your uncle has lived in the workshop does not mean it has planning permission to be used as a dwelling. If the correct valuation is £60K then you should be able to get a mortgage offer for 90% of this? You may need to to get a mortgage against the purchase price and then MEW the rest ... otherwise I suggest a couple of 0% credit cards each.

But you really need to have done your sums to within an inch of your life before you go into this - £14K does not sound like nearly enough. Have you accounted for six months of mortgage repayments, plus buying and selling costs in your sums?

mlz1413

I 2nd firefox's last post, I spent over £25k on a terrace house that needed new roof, damp proofing, gch, electrics, floors, kitchen, bathroom and decoration the bulk of that sum was just materials so £14k is whistling in the wind if you also need windows and probably planning permission.

Just because a place is small does not mean the costs are small, I would urge you to get quotes for the major works before going any further and enquire at your local council what the dwelling is actually registered as.

Dinah93

Do you have planning permission on it? If not you're taking far too big a risk, likely as not you will be told it is not suitable for residential occupation, which people developing properties on the sly are usually aware of but hope that once its up it will be allowed to stay. Banks look for copies of planning permission to lend as well.