£3.5m mortgage... How likely?

CloudCuckooLand

Bet the £3.5m Greek property is only worth £3m, today.

shortchanged_2

OP, out of curiosity did you leave a 0 off the end of your household income. As these are real grand plans for such a low household income.

thelawnet

CloudCuckooLand wrote: »

Bet the £3.5m Greek property is only worth £3m, today.

For £3.5m I'd want all of Greece...

maninthestreet

Bigmortgage,

Your proposition sounds like a commercial venture, so it's unlikely you will be able to secure funding via the mortgage route.

Conrad

The obvious first port of call is to try and raise funds on the Greek property, but as you are probably aware, in the current climate that would be challenging!

To purchase the UK property you will need at least 30% deposit and a specialist private lender. I deal with this sort of thing a lot and I can say with certainty that a large UK Bank will definitely decline this so do not waste your time with them.

A private specialist lender will want a minimum rate of 7%, but usualy something over 9%. The usual plan is to complete with one of these then look to remortgage to a standard Bank in due course where the rates would be circa 5%.

It is likely this would have to be done 'non status' as the new venture has no accounts. If the overall case is deemed high risk (impossible to say without a lot more info), then you could be paying at least 1% per month.

Good luck.

bigmortgage

Thanks for everyone's advice. I guess I will have to forget about this plan.

The property in Greece is one of a kind, officially valued at £3.5m, we have had offers in excess of £5m, but it is not and will not (at least in my lifetime) be for sale. It isn't the kind of property you buy as an investment, it will never generate a large profit and maintenance will always be high, but it's here to stay.

Shame really, I was hoping there may be a way to use it's value and mortgage-free status as a way to make some money.