Girlfriends parents losing house. Need Help!

greenman2

puddy wrote: »

i thought properties were only unmortgagable if there were some heavy structural probs/planning probs/freehold probs with the main house of the property or there were no utilities/sink/toilet in the main house of the property

im sure someone will explain but having an unfinished granny flat doesnt normally mean its unmortgagable, unless i suppose its a basement flat and its structurally problematic/hasnt been signed off, but even then, what if you just sold it as a house and no mention of granny flat, just an unfinished basement renovation?

im imagining a granny flat as separate to the house in this case, as he uses the term annex, maybe its attached?

I totally agree puddy - without knowing all the details, it does seem strange to say that the main reason that the property hasn't sold is because of £15k of unfinished work to the annexe...unless like you say it affects the structure of the main property...if this is the case I would think it's likely to cost alot more than £15k to put right, and even more reason (IME) not to get involved.

greenman2

And I would think that once the compulsory surveys are done, it would be highlighted if the property is structurally sound or not and give it a red or green light. I think that the mortgage lender would decide on those facts, as long as they are happy with the personal details of the person applying for the mortgage.

ian_jamieson

GDB2222 wrote: »

It's amazing he can do any work at all with a broken back, really.

His back in fixed. Took him 3 months to walk again after it.

Just asked my girlfriend, and it happened before he put the property up for sale.

I seem to be getting blasted here for trying to help. I can't answer all questions, I only know so much.

There's nothing major to be done. If I remember right the downstairs bedrooms are due bathrooms and plumbing.

puddy

im not blasting you, im highlighting inconsistences which would make me concerned that i was being spun a line and if they have bought their daughter up to not recognise reality and take responsiblity for decisions they make, id be concerned about having a relationship with her

i know you dont have all the information, thats the point im making!

i cant see why a house is unmortgagable just becomes bedrooms need plumbing (which i assume are en suites)

homelessness is no laughing matter and one does everything they can to avoid it. his back has healed but presumably the climate means finding work is harder, so you either (some time back) take out some credit, finish the work, stick a reasaonable price on the house and get it sold (why were they selling anyway?)

or, wife goes out to work in boring mundane but safe job, brings in enough to keep mortgage up to date until husband is fit and well enough and climate is better so that he can start work again and/or the house is sold

but as judge judy says, if it doesnt make sense, it usually isnt true

GDB2222

ian_jamieson wrote: »

His back in fixed. Took him 3 months to walk again after it.

Just asked my girlfriend, and it happened before he put the property up for sale.

I seem to be getting blasted here for trying to help. I can't answer all questions, I only know so much.

There's nothing major to be done. If I remember right the downstairs bedrooms are due bathrooms and plumbing.

"I seem to be getting blasted here for trying to help." It happens a lot here on MSE, and probably on other forums too. I sympathise.

As far as I can see, your g/f's father has two choices:

1. Pay through the nose for finance to keep himself afloat financially and finish the property in the hope that that will increase the value a lot.

2. Allow the repo to take place, and keep his fingers crossed that it will sell at auction for a good price.

If he goes for option 1, it costs him at least £40,000 (well, £35,000 because £5,000 is paid to reduce the mortgage arrears). So, I guess the real question is whether the property will increase in value by at least £35,000 by finishing it off?

If he goes for option 2, the snag is that the lenders will auction it off in its present condition, and g/f's father may be disappointed at how little it reaches at auction. £180k seems to be wildly optimistic in teh circumstances.

There are bound to be substantial costs involved. The lenders will usually get two surveyors to value the property for a start, and there will be a provision in the mortgage for the lenders to charge loads of fees. I happen to have the fees of Northern Rock to hand, and:
Possession fee is £928
Valuation fee is £100
Insurance fee is £100
Conveyancing fees at cost, as are estate agents, and everything else they spend.




I think he is quite frankly stuffed either way, but he should have another look at the finance option.

GDB2222

Oops those were the 2005 fees. Must be more now, I guess.

FraudBuster

but as judge judy says, if it doesnt make sense, it usually isnt true

:T


:rotfl:


......................................

greenman2

ian_jamieson wrote: »

His back in fixed. Took him 3 months to walk again after it.

Just asked my girlfriend, and it happened before he put the property up for sale.

I seem to be getting blasted here for trying to help. I can't answer all questions, I only know so much.

There's nothing major to be done. If I remember right the downstairs bedrooms are due bathrooms and plumbing.

Hi i_j,

I'm new to this forum, and started a thread a few weeks ago looking for impartial advice for the situation I found myself in, based on the details that I gave.
A few posts at first seemed a bit harsh, I guess as it wasn't what I wanted to hear, but having read them over and over, realized that they were advising, not flaming - basically just giving objective, logical and unemotional advice in reply to what I had asked.

I think it can only help if people are asking questions and highlighting potential problems that you might not have thought about yourself.

Again, good luck

hazyjo

Even if the owners couldn't get/didn't have credit cards (very strange given the other info), I'm sure the daughter or other family members would be able to help out if it's for as little as you say.

How long have you been with this girl? Just curious...

More holes in all this than a leaky sieve! Not blaming you either, OP - just still not sure you're aware of the full picture...

Jx

HiYield

I haven't read all the threads, but something that comes to mind is a property investor. There are people out there who want to invest in properties and would do it with your parents just to have a stake in the investment. They specifically look for cases like these as they know the tight spot and deadline create an opportunity for cash investors. This might not be the best solution offered, but could be realistic if nothing else seems quick enough and would ensure they stay in the house and maintain an equity stake themselves, albeit a smaller one. Let me know if you need more information.