Raising money/mortgage for large renovation/build.

QfanatiQ

Raising money/mortgage for large renovation/build.

I am sure the answer may be no, but i am keen to get an understanding and or some advise.

A quick synopsis -
I am an Architectural Technician. Have run projects worth several million.
There is a property for sale, with planning permission for large scale renovation and new basement build.
I am keen, but can only raise 13% of the money needed my self. More from family, but i want to reduce anything lended by any family.
I can do the drawing works but sensible enough to stay in work rather than trying to take time off and manage project myself.

Overall, when I look at the figures if this was a finished project, we could not get a mortgage for this property as the bank would consider we do not earn enough. And even if they would, it would leave us, I would say too tight, but just about manageable.

However, my other feelings are to see if this can be achieved (in terms of raising money, doing the project and then selling). As upon completion there should be a minimum profit of 15%. Of course, I recognise the delicate nature of the Market and am not blindly assuming it would be sold over night. So consideration needs to be had should it be a slow sale.

While I work in construction, when it comes to raising monies/funds, this is an area I have never dealt with and have no knowledge of at all.

Does anyone have any thoughts, advice, tips? I am happy to provide more information if required.

Cheers,,,,,Q

Doozergirl

You approach it as a business proposition with the bank but with 13% you're nowhere near. You're likely to need a 40% deposit and the funds to take the project to a point at which you can release more from the bank at the same LTV from the increased value. But with massive redevelopment of a building, you will for quite a long time have a building that is questionably worth what you paid for it, let alone the money you've poured in.

You'll bankrupt yourself trying to do it.