Getting a mortgage on a property that hasn't got a bathroom or kitchen sink

cmac1107

Not sure if anyone can help. I've seen a repossession that needs work doing to it, the old owners have ripped the central heating system out and the bathroom out. The property is currently on the market on £85,000. Next door is for sale at £109,950.

I originally viewed the property last week, but its changed agents. I wanted to go for a second viewing with this new agent, but they wont let me view it saying it has to be a cash buyer, as I wont get a mortgage on the property, as you cannot get a mortgage on a property that doesnt have a working bathroom and kitchen sink (think all the pipework has been taken out of the house.) Does anyone know if this is correct? or if there is anyway around this?

The first agent never mentioned the fact that the property was un-mortgageable. I have money for the deposit, a mortgage in principle offer, and money to do the renovations.

Thanks.

Cmac

MissMotivation

It would be highly unlikely, given that the property is uninhabitable, that you would get a mortgage.

Just spoken to an IFA and he agrees with me. The agent is probably correct.

cmac1107

Thanks, best start looking again

Milliewilly

It also sounds like with new central heating, kitchen, bathroom plus contingency fund its not that cheap compared to the one at £109950 that you can probably haggle down and get a mortgage on.

PasturesNew

You'd need to take out a very expensive bridging loan, buy it, immediately have the sink/piping etc ready to be fitted and fit them immediately, then get a mortgage on it.
Risky ... but that's the way it could be done.

Auction catalogues will usually carry adverts for companies that provide bridging loans - people who buy at auction often use this method of buying..... however, most of those will be experienced developers/builders/buyers and not FTBs. So tread VERY carefully if you went down this route, it could so easily all go completely t1ts up.

silvercar

To add to PN's info, most lenders are now wary of lending to anyone who has not owned the house for 6 months. So plan on bridging for at least that time.

melissa*b*

Hello
i'm in a similar position to the original poster
without sounding too simple i just wondered what constitutes a 'working bathroom and kitchen' ?
if i could convince the seller to put in a basic sink in the kitchen area and a toilet/bath would i be able to get a mortgage on it ?
any help appreciated

silvercar

melissa*b* wrote: »

Hello
i'm in a similar position to the original poster
without sounding too simple i just wondered what constitutes a 'working bathroom and kitchen' ?
if i could convince the seller to put in a basic sink in the kitchen area and a toilet/bath would i be able to get a mortgage on it ?
any help appreciated

There is a difference between something which is theoretically mortgageable and one which a lender is prepared to lend. Other factors will play a part, like whether you have a large deposit and whether you have money set aside to improve the property.

Remember that, if it was as simple as sticking in a kitchen sink and a toilet, the seller would have done that as that would increase the potential buyers. So either the seller can't afford to do it or they won't for some other reason; or there is other things wrong with the property that make it unmortgageable.

If you are convinced that that is all it would take to get a mortgage offer, you could ask permission to do the work between exchange and completion. Risky strategy!