Remortgage on a House received as a Gift - Question

confused_kid

Afternoon guys,

after some good advice again from your knowledgeable folk!

Being gifted a house from parents (wedding present), and i'm looking to remortgage a small amount (10-15k) to complete some rennovations. House needs re-wiring, windows, roof etc...

Questio is, im being gifted the house now, but I plan to start the work within a month or 2. I looked at remortgaging, but minimum I need to have owned the house is 6months. This is where Santander said there is no minimum...and I can remortgage anytime.

Called them today, different story, 6month is what they said (after confirming with management). I have called a few times to make sure im hearing the correct information. All confirmed...6months :S

So are there any other products (no keen on personal loan) out there available that you guys know of?

Thanks in advance. Hope to hear suggestions soon.

GMS

Could you buy the property instead with the deposit being a gift from parents, and the sale proceeds which will go to your parents could be used to fund the works if they were happy to pay for them.

Alternatively your parents could have the works done before sale and get paid back when you buy the house.

If the required works are deemed to be serious the lender may impose a retention anyway.

confused_kid

GMS wrote: »

Alternatively your parents could have the works done before sale and get paid back when you buy the house.

hmm...that is an option..will discuss that with parents

If the required works are deemed to be serious the lender may impose a retention anyway.

don't think they're serious...the rewiring is just something that could be done seeing as im taking out the carpet and wallpaper getting the walls skimmed, and laminate flooring is going down...might board to roof up too to use as storage...think it would be affected by any lenders survey.

ideal situation would be to find a lender who will be able to lend without imposing a minimum term of having had to own the property.

Thanks for reading.

GMS

There are some lenders who will allow a remortgage but you would be restricting yourself to a few.

Could you not move in and put up with it for 6 months?

Senior_Paper_Monitor

Shoul be possible - but probably not enough for 'a mortgage' anyway, so into secured loan territory - not always the easiest on unencumbered properties (as I recently found out - although I fail to understand why the problem arises) but certainly do-able.

hcb42

given the small amount, have you tried a loan?

Thrugelmir

Is £10k to £15k enough?

House needs re-wiring, windows, roof etc...

JQ.

hcb42 wrote: »

given the small amount, have you tried a loan?

That's what I'd do - it could cost you over £1,000 just to take out the mortgage, plus interest. A short term personal loan at a higher rate of interest would probably work out cheaper.

Senior_Paper_Monitor

A valid question Thrugelmir !

I suspect that borrowing to the minimum mortgage level - initially by secured loan (poss bridging loan) then converting to a mortgage (against best LTV due increased value - and at least 6 months down the line) when completed may be best option and leave OP and new spouse well set for their 'new life'.

confused_kid

Thrugelmir wrote: »

Is £10k to £15k enough?

Sorry don't know why I said roof. Yes from quotes, and a few favours, combined with a family effort on the DIY we'll need a max of 15k...

I suspect that borrowing to the minimum mortgage level - initially by secured loan (poss bridging loan) then converting to a mortgage (against best LTV due increased value - and at least 6 months down the line) when completed may be best option and leave OP and new spouse well set for their 'new life'.

hmm, so secured loan, and then 6 months later possible switch to remortgage if i've read that correctly. sounds an option.

thanks, looks like we need investigate the secured route.

opps I should mention (should've mentioned earlier), this is actually info for my younger brother...not me...im not as fortunate to be recieving a house...wonders to being the middle son hey

thanks for the info once again forum members, great info, questions always answered.

Senior_Paper_Monitor

Don't ignore the comment that at 15K you are unlikely to find a mortgage lender willing to do it !

Lowest minimum I can recall seeing recently is 25K and most are higher than that (correction just checked - several at 15K !!).