Help

ianm1982

My and my partner have been offered the chance to buy a council house as they are selling it on. The house is in a very good part of swansea and they want 60 grand for it. The house would need approx 40 grand to extend it and renovate it but would be worth about 130 too 140 after the work what is the best way to go about this?

Thanks in advance for any help.
Regards
Ian

Conrad

High st lenders sch as Abbey can do Right To Buy as long as you have a clean credit record.

You don't say whether you have that extra money for renovation, or whether you'll gradually do it over the years out of income, or if you want the renovation money now.

VIGILANT22

Is this a right to buy or is it the council off-loading stock??

ianm1982

Sorry guys should have said, It is not a right to buy its a councill house a old lady lived in next to my gf parents she has now moved out and the council have give my gf dad the option for us to buy it first before a developer at a reduced rate. 60 grand, we have approx 10 grand deposit for a mortgage and money set aside for fees but we dont have the money to do the house up and was looking to get 40 grand or so to renovate it on top of the mortgage some how?

Conrad

You can buy it as is with a 90% mortgage (assuming you have decent credit etc), and if it truly is worth more, you can top - up / remortgage after completion sujbject to lenders agreeing to do this. Be aware if you change lender after say 3 months, there will be a penalty fee on most 'low rate' deals.

All lenders have special rules about council housing in terms of the local area (are most of the properties still council / or private for example), and usualy only lend on houses made of brick with ordinary pitched roof.

Good luck.

VIGILANT22

You can obtain a "renovation" Accelerator mortgage...it is the same as any other mortgage, by that I mean it's not commercial or high rates....finance is released in staged payments during each stage of the project. This type of mortgage is designed exactly for what you have in mind.

Not all advisers are knowledgeable in these areas.....so if they tell you... you cant find another one because you can....Dont worry about it being ex council...Any probs post back here....and your deposit is suffice

Conrad

VIGILANT22 wrote: »

Dont worry about it being ex council...

All lenders have specific rules around council stock.

VIGILANT22

Conrad wrote: »

All lenders have specific rules around council stock.

All lenders do not do ""renovation" Accelerator mortgage..." which is required here

Conrad

VIGILANT22 wrote: »

All lenders do not do ""renovation" Accelerator mortgage..." which is required here

Yep, but the most important aspect is the security offered, and as such they do have specific rules around council property, hence why I bought it to the OP's attention. Better for his to make sure the lender is aware it's council prior to wasting money on a valuation.

ianm1982

VIGILANT22 wrote: »

All lenders do not do ""renovation" Accelerator mortgage..." which is required here

I am finding it hard to find any lenders offering these type mortgage's any idears.

Conrad wrote: »

Yep, but the most important aspect is the security offered, and as such they do have specific rules around council property, hence why I bought it to the OP's attention. Better for his to make sure the lender is aware it's council prior to wasting money on a valuation.

What do you mean by specific rules. The house is in a pretty much whole private area and a expensive one at that to move into the property next door sold last year for 160 it is a little bigger but just renovated.

Also i have been told another way it could be done to get a mortgage for the 60 and buy the house then get it valued then re mortgage it as it will be valued around 100 were getting it cheap from the councill. And did a few months ago get someone to value it and they said 100. Then use the money left ie the 40 to renovate the house?

VIGILANT22

For this you will need to see a whole of market adviser.....this is a specialised area..you cant find something like this on moneysupermarket...or go down the Abbey!

If you're really serious about this project you will take the advice of the professionals ie an adviser.....If the first adviser doesnt know how to do this find another....your average adviser wouldn't have a scooby how to do this.....

Ask family/friends/colleagues to be referred to an adviser they have used and been happy with.....