Wanting to Sell, but need money to invest first!!

saunrock

Hi,

I currently have an interest only mortgage on my property and am paying a minimal amount, so am not wanting to change mortgage deal if this can be helped.

I am wanting to put my house on the market. It has been valued at £280k and I owe £190k on the mortgage. The house needs alot of work doing on it and with the right money to invest, could see my equity increase by a substantial sum. I have a friend who works for an estate agent and we have come to the conclusion, if I was to spend around £100k on the property it would increase the market value to around £500k.

I have tried the bank that I have the mortgage with and they are not interested, which I expected. Does anyone have any ideas where I could possibly look for that type of investment? Would I need to look at doing personally or through a business?

Thanks in advance for any help.

Saunrock

pie81

Without knowing more about your property, I'd be sceptical that an investment of £100k would turn a £280k property into a £500k property.

What's wrong with the place now? What would you plan to do to it? Have any similar properties near you sold for £500k? Be very careful of over developing for the area.

saunrock

Hi,

I have done the research and I know alot of people in the trade. It is currently a 4 bedroom property that will be turned into 6, with 2 en-suite. Most property's in the area sell for between 400K-600k. I have an acre of land that all needs landscaping. Plus alot of tidying up!!
Cheers.

DVardysShadow

Get planning permission. Break the project into independent phases which can be financed and implemented separately. Save, scrimp, beg.

Bermuda_John

sell the land to a developer who could knock down the house and build up 3 new ones in the space (if big enough)

i'd be interested in sorting it out if you are interested in taking this route

Hippychick

Seems a lot of hassle just for a potential 30k gain. If you got pp I bet the value would increase a bit anyway, why not sell now and avoid the headache and use the 90k equity wisely and for something you really want?

mariaadam

Hello,

If your house is truly worth this value then investors will see the potential too and buy your house above whats its on for now to get the same investment. In this market I wouldnt advise anyone to get in more debt to 'possibly' get a return. Don't forget, the more expensive your house is put on the market for then the smaller proportion on people you will have to look at it.

I work in an estate agent as a mortgage advisor and our company deal with everything to do with the house buying process. If the bank will not loan you the money there is often a good reason. Please be careful and good luck!

Hope this helps you with your decision.

martindow

If you haven't got the money or access to it why not invest in just getting PP for the larger house? With this you could increase the value. As has been said, I would be dubious that 100k investment would increase value by 220k,