buy-to-let mortgage advice

mandyles

My husband and I are looking to buy a 3 bedroom house in need of total refurbishment. The property has a sound roof, double glazing but needs new kitchen and bathroom and decoration. We need help on finding the right morgage that will retain the money, let us go in on completion and do the property up and release us the mortgage. We have just been turned down by a valuer after paying £275.00 as he has said it is unhabitable. Surely he didnt think we would rent the property in that state! We are not sure where to go to now!! Please help before we pay any more wasted money!!

Thrugelmir

If the house is uninhabitable. Then you'll struggle to obtain a mortgage. You may well need to source a commercial loan then refinance once the property is habitable.

Wh05apk

TMW have a "light refurb" product which may be suitable.

paulfaz

How are you going to gain access to the property without the completing and the current owner getting the money?

mandyles

I am quite sure it was the TMW that valued the property. Does anyone know exactly what means light refurb?

mandyles

I was told between exchange and completion you could start the work and the mortgage give you so many weeks to do the property up then they come in a re-access the property then release the money. Not sure what I am said is fact!

GMS

'Light Refurbishment' is not 'Total Refurbishment' which you state the property needs.

Light would be redecoration and some minor repairs. Your property is not habitable therefore uinsuitable for mortgage security. At best you would get an offer with a total retention meaning no funds until works completed.

You may need to look at a bridging loan to get the property up to spec then remortgage but you will normally need to have owned the place for 6 months before remortgaging. Bridging is expensive so make sure the numbers add up.

mandyles

I have only said total refurbishment because we have had one valuer of which said the property is classed as uninhabitable. The property has been lived in previous by an old man. He had an old bathroom suite in pink and an old fashion kitchen of which both is still useable. There is running water. The carpets have been taken up. Would you think this is classed as total refurbishment or light refurbishment? Do you think the valuer was right or do you think another valuer may say different? I am worried about paying more money to another valuer who may say no again.

5850matty

If the house does not have a usable bathroom then it is deemed to be unfit for mortgage. You shoudl look at a company called buildstore, they might be able to help you but you will need at least 30% deposit ! Good luck

mandyles

who would be the best mortgage for total retention until works are completed. Sorry for so many questions but we need help as we have already paid out money and worried about losing the property. thanks

mandyles

thanks we do have a 40% deposit. The bathroom is useable but just old fashion. There are no cracks just needs a clean. I will have a look for buildstore thanks