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Unmortgageable Property

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  • Flyboy152
    Flyboy152 Posts: 17,118 Forumite
    Thrugelmir wrote: »
    Then you would struggle to obtain the mortgage in any event. As both the rental value and property would fail the lending criteria.

    How can you know that? You don't know what the OP earns, how much he wants to borrow, how much the house is worth or how much rent he intends to charge.
    The greater danger, for most of us, lies not in setting our aim too high and falling short; but in setting our aim too low and achieving our mark
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Flyboy152 wrote: »
    How can you know that? You don't know what the OP earns, how much he wants to borrow, how much the house is worth or how much rent he intends to charge.

    If the house is not suitable for letting then it would not be mortgageable for a rental property. OP's earnings for a BTL would be secondary to the rental income and if not suitable to let the rentakl income is zero. Rental figure would be given by the valuer, not by what the OP intended to charge.

    If not mortgageable then the valuation would be zero(for mortgage purposes)
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Flyboy152
    Flyboy152 Posts: 17,118 Forumite
    GMS wrote: »
    If the house is not suitable for letting then it would not be mortgageable for a rental property. OP's earnings for a BTL would be secondary to the rental income and if not suitable to let the rentakl income is zero. Rental figure would be given by the valuer, not by what the OP intended to charge.

    If not mortgageable then the valuation would be zero(for mortgage purposes)

    All of that very much depends on what arrangements the OP makes with the lender and what retentions they agree together. I would have thought you knew about that sort of thing.
    The greater danger, for most of us, lies not in setting our aim too high and falling short; but in setting our aim too low and achieving our mark
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Unsuitable for letting means no rental income which means no means to support the mortgage. Total retention likely so unless there is cash in place to buy the property or the vendor is willing to put the property right before completion then not going to happen.

    On a residential property it may be possible to have a part retention.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Flyboy152
    Flyboy152 Posts: 17,118 Forumite
    GMS wrote: »
    Unsuitable for letting means no rental income which means no means to support the mortgage. Total retention likely so unless there is cash in place to buy the property or the vendor is willing to put the property right before completion then not going to happen.

    On a residential property it may be possible to have a part retention.

    All of that depends on which lender you go to. Again, I'd have thought you knew that.
    The greater danger, for most of us, lies not in setting our aim too high and falling short; but in setting our aim too low and achieving our mark
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Flyboy152 wrote: »
    All of that depends on which lender you go to. Again, I'd have thought you knew that.

    Which lender would you suggest?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Flyboy152
    Flyboy152 Posts: 17,118 Forumite
    GMS wrote: »
    Which lender would you suggest?

    You're the adviser, can't you find one?
    The greater danger, for most of us, lies not in setting our aim too high and falling short; but in setting our aim too low and achieving our mark
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Not my client so have no idea of their circumstances.

    You seem to know the lender so why not let them know?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Leon_W
    Leon_W Posts: 1,813 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    As a straightforward BTL it doesn't work for the reasons GMS states.

    If it were me I would probably bridge for 6 months (for minimum ownership terms) then remortgage.

    The price of the property would obviously have to reflect all the extra fees and faffing about.

    Regards
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Flyboy152 wrote: »
    how much rent he intends to charge.

    The property rental will be evaluated on the basis of the properties current state not when its been totally refurbished.
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