small property loan

in_the_shed.

hi im new.
im tring to find a loan to buy a pair of garages that are for sale on the same street as my parents house.
the are up for 30 thousand.

im moving back to my parents property at the end of this month from a rented place.

so i kind of see them as an investment and a bonus (as its hard to park on the road)

im working and when i move back will have a higher expendable income.

is there anywhere in perticular i should look for a loan to buy this little bit of property.?

is there any way to get a better rate as the money is to buy something that should have a continued value and a posible return if i were to rent them out in the future.?

lawrie28

I would think you would need a mortgage to buy these, possibly through the business banking team at your bank. Work out a small business plan to rent out the garages, even if it means you rent them yourself - (same as you paying the mortgage yourself) and I would expect you to be OK. But you'll need a deposit, probably larger than for a house.

HTH, and someone may well have a beter way of funding them.

Apples2

You'll be lucky to get a loan for £30k.
You give nothing away in your post about your circumstances but from the little we do have, it is likely you are a Country Mile away from unsecured loans at that figure.

Leaves something like a mortgage (but on a garage!!??) so you will need a sensible deposit. Do you have a stash put away?

in_the_shed.

hi as far as ive been told its too low an amount to have a morgarge for..
where i am in the uk 30 thousand would be needed as a deposit for a house.

i earn 25 thousand basic..
30 years old
5+ years in a stable job with a big company
i have some money but not even a 6th of the money they want.
its posible i could split it up with my wife for eg getting a loan for 35-50% if that would make it easier.. but im sure that would be more costly than one amount??

this is why ive come here.. not sure where to look
i spoke to an estate agent and they were not much help (as normal..lol)

in_the_shed.

can anyone else help??

lawrie28

lawrie28 wrote: »

I would think you would need a mortgage to buy these, possibly through the business banking team at your bank. Work out a small business plan to rent out the garages, even if it means you rent them yourself - (same as you paying the mortgage yourself) and I would expect you to be OK. But you'll need a deposit, probably larger than for a house.

HTH, and someone may well have a beter way of funding them.

You try this?

Gorgeous_George

A residenttial mortgage is a non-starter and a business mortgage would be expensive and require a business plan. A commercial mortgage would also have a minimum amount which is almost certainly higher than £30K (and that would be 100%).

Unsecured personal loans are available. At Zopa the limit is £15K so you would need your partner to get one as well as yourself. Assuming you both have good credit ratings, £30K might cost you £608 per month for 5 years at 8%.

If your parents could be persuaded to extend their mortgage to provide the funds (and if they have sufficient equity etc.) a mortgage would cost £175 per month for 25 years.

How much would they rent out for? Do the sums make sense? My guess is that they could be a worthwhile long term investment - especially if their is redevelopment potential for the site (potential housing) but any potential profit is likely to minimal. Better returns might be available elsewhere.

GG

in_the_shed.

[QUOTE= especially if their is redevelopment potential for the site (potential housing) but any potential profit is likely to minimal. Better returns might be available elsewhere.

GG[/QUOTE]

i would like to rebuild with a flat above.. its been done in that way just round the corner.

i think the only way would be a loan route..
as my father is not far from owning his house, but i can talk to him.

Trajal

Hmm developing the property will confuse matters a tad.

You basically need a combination of financial products.

They will most likely need to come under a catchall mortgage, the money will generally be released by the bank at specific times.

You'll need to frontload the application with copies of the plans of the nearby property, your own plans, and a lot of research on values etc.

This is the point to go to your bank and talk to them about how to do it. It's very possible my brother has developed a number of properties in the past and he has obtained finance for all of them, but your bank needs to be the first port of call to discuss how to finance it.

BIG hint: Budget 30% (some would say 40%) at least over the quoted costs for the build because if the finance runs out you're in a world of hurt.