mortgage

hammerz

Hi, any advice greatly welcomed. I have a property conservatively valued at £400k, 30K mortgage. Looking to build a property on adjoining land (separate title) estimated value on completion £280k. Current income (joint) only 15k. Part rental of existing property to achieve 7.5k p/a. Rental of new property (holiday letting) advised at 18/22k p/a.
Mortgage of 180k required for build and settlement of existing mortgage.
Any views on this?
Thanks in advance
Cam

_Andy_

'Views' in what sense?
I.e. what is it you're specifically wanting information on?

getmore4less

Don't think you will raise £150k on a residential basis on the current property with your income.

Not sure what you could get with partial rental at £7.5k
Maybe £94k that would be 75% LTV of a 6% gross yield(£125k).

Commercial loan to build a holiday let.

Holiday let gross yield on £150k build investment looks ok at 13% but a bit low at 7% on estimated value of £280k(better if net yield).

Have you accounted for setup costs for a holiday let?

How much could you get rental if you fully let you £400k place and lived on the build site during the build, might be able to raise it that way.

hammerz

Andy, thanks for the reply, sorry agreed not very clear. Looking for advice on the best way(or likelyhood) of raising funds.

Getmore4less, thanks also for the reply.