Finance Property Without Mortgage ?

holly_hobby

Yes Izzy - its a semi-commercial property (refer post 6).

You would apply for a change of useage (not always agreed), if you no longer wanted to use the rear for comm purposes, and wished to extend your residential quarters onto the site.

Hope this helps

H

izzzzythedog

holly_hobby wrote: »

Yes Izzy - its a semi-commercial property (refer post 6).

You would apply for a change of useage (not always agreed), if you no longer wanted to use the rear for comm purposes, and wished to extend your residential quarters onto the site.

Hope this helps

H

you couldnt have been more helpful :T
many many many thinks for taking the time to respond , its very appreciated

holly_hobby

Its my pleasure .... I do hope that you are able to achieve your goal !

Over & out ....

H

waveneygnome

Hi Izzy.

I was in a simialr position to you 15yrs ago. Had own house with mortgage. 50 equity, found great 'project' (needing £50k), was on low income, I approached banks/commercial mortgages, but they all said no due to it being too 'risky', and my income couldn't support it (which it could if they took rent into account)..................anyway................

As I was walking out of the bank (Lloyds), I saw a loan advert for car loans 'instant decsion £20k max car loan'..............on impulse I picked up the form, filled it in at the branch, handed it over the counter............and 5 days later £20k was credited to my account. I was amazed that the bank would not lend me on 'risky' bricks & morter, but with no secuirty, would lend me £20k on a depreciateing car asset.

By now, I had the bit between my teeth, and went around all banks and managed to get another £10k loan from Barclays. Next I hit the credit cards and managed to get 6 cards all with £4k limits.

To other people, I was taking big risks - but if you have a genuine belief in the project/new property, you are the one who can clearly see the value/potential value and gauge the risks. I actually felt I was taking hardly any risk compared to buying a £20k car, and spending money on credit cards buying consumer goods or going away on luxuary holidays.

My advice to you is:

a) If you are absolutely certain about the property - then go for it

b) The property is being sold at auction - usually there is a reason: try and find this out, as it may influence your decision (e.g its got structural problems/hard to sell as partly commercial etc)

c) You need to factor in all the buying costs of auctions & legal fees as well as the money to purchase

d) If the auction guide price is £50k...be prepared for it to go higher. Where I live the agents appear to be setting lower guide prices, and in the last year most porperties are selling at guide +10/15%. I would suggest you need to budget for £60/£65k - can you afford that?

e) You need to factor in costs of the new property - are you liable for both council tax, and business rates? Can you afford them?

d) Lastly, very importantly, have financical back-ups plural. By this I mean, plan for 'what if scenarios'. I arranged all my finance myself, then i approached my parents and asked them if I got into really bad financial trouble, could they help me out and by how much (back-up 1). I approached several supermarkets to see if they had vacancies for part-time evening work (in case I needed to get an additional job to help pay for all the borrowing) - at the time they all had vacancies (back-up 2). My wife asked her employer if she could increase her hours of work (back-up 3). My wife also sought out part time work options for Sat/Sun's. (back up 4)

Sorry for such a long post, but I can see bits of me in you.

I obviously bought the project property, renovated it, lived in it and sold it for a massive profit. I was not expecting a massive profit. I had not even factored in property price appreciation in my decisions - which I think is the same as you.

Essentially, what I am saying is that you have to certain. Certain of your ability to repay, certain that you can cope/handle the risks/potential stresses involved.

Good luck with your decisions.

izzzzythedog

wow and thank you

sadly a slight change in plans

i first called the estate agents asking for a viewing and was put off after being told they were not taking any more viewings as it was so close to the auction plus the amount of interest ( 8 days before ) , do you risk upto 50k on a building you cant see ? well i thought id go see it

first thing you notice is the doors and windows , there now lying outside the property where the fire service have ripped them off and doused them down , yep its been lit , not only this but after a quick chat with the locals it turns out it was done 2 days before i called , they didnt mention this thats for sure

now call me mr suspcious but i recon theres a reason they didnt mention it and as people have viewed it they are keeping quiet to keep the price high , as its an auction its buyer beware so no duty of care to inform of everything or indeed anything , buyer beware indeed and im more than pleased i had a look first

the property is everything i could ever want , i can repair over time the vrs issues and have a lovely home or i could have , the fire has created around 20 grands worth of additional rebuild costs , theres now structural instability , to bring the place upto the standard i desire i simply cant see the money , i certainly dont have it and cant get it , i could manage the 25k rebuild but not a 45 and then its at the ceiling of possibility in a market thats downturned , its now not worth it , its a massive shame it really is but i cant do it , really it needs knocking down and a rebuild , at the guide ( 35 ) and the rebuild cost ( 65 ) then the house would be worth 100-110 , to get 65 is a pipe dream

so sad to say its fallen at the first hurdle , its at aution tomorrow and ill post up what it went for when i know

thanks for people taking the time