Mortgage for Extensive Renovation Project

Matty0682

Hi Folks

My wife and I are thinking about buying an old pub that has planning permission to be converted into a 5 bed house. It requires compete gutting as a nearby stream got blocked and flooded the ground floor.

Anyway, my question is how do we go about getting a mortgage for this property. Bearing in mind the ground floor is still under 3 inches of water and is boarded up (been vacant for at least 2 years)

I guess conventional lenders wouldn’t touch as with a bargepole. So has anyone had had experience of buying property in need of extensive renovation and obtaining finance in the current economic climate? Points to note: property is water tight (roof in v.good condition) and structurally sound.

And how would you value a property in this state? I guess developers look at the value when complete, then take off cost of buying and refurbishment plus a premium (return).

Thanks:beer: