Are there any possible mortgages?

aka_shortie

After some advice. Looking to buy a property that is up for sale at the moment. It's up for 80k but refurbished the ceiling price on the road for a similar property is 150k.

The reason for the price is has laid empty for a few years and has been vandalised. Graffiti on every wall. Kitchen and bathroom ripped out. Basically needs gutting out and starting with a bare shell structurally it is sound.

I have 40k in savings and was looking for a 70k mortgage, 10k deposit, leaving me 30k to do the work.

Because there is technically no bathroom / kitchen due to vandalism, I can't find a mortgage as it's in there requirements.

Any ideas who might offer a mortgage in this instance?

Thrugelmir

Apply to a bank for commercial lending.

This isn't a mortgagable property.

GMS

You could try a bridging lender.

Try to build in further advances as the work progresses.

A smaller niche company wouldl be the best to try.

Development Finance types. I have done similar deals but your figures may be tight. You would need to pay for a valuation and set up fees.

Is the purchase price negotiable?

aka_shortie

I don't think there would be much movement on the price.

I could get another 10k for the development if really needed but I would be doing as much work as possible myself and wouldn't be looking for the quickest turn around.

GMS

Might be doable. Speak to a broker to see if there is a way.

aka_shortie

I am seeing one tomorrow but I was hoping to be a little fore warned.

Don't want to be sold something that benefits him more than me if you know what I mean.

Especially as this will be my first ever property purchase.

GMS

You will not get a mortgage on the property as it stands.

Development finance could help get the property up to a mortgagable standard.

The key to this is how you will repay the development finance which will not be cheap.

Would you qualify for a mortgage today on a 'standard' property?

Typically you would need to have owned a property for 6 months prior to any remortgage so this needs to be factored into your calculations. There will be 6 months worth of interest to be paid or added to the loan.

Do not enter into anything you cannot be reasonably certain of getting out of.

aka_shortie

Cheers for the advice gms.

Yes, no problem getting a normal mortgage. Agreed in principle a mortgage of 140k 3 months ago when I started looking to get on the ladder.

Just this is a bargain for the money. Rip everything out and have a blank canvas.

It's also got a substantial amount of land. It's an end terrace, subject to planning there is enough room for an extension/double garage/even another property. Obviously that is all if's, but's, maybe's.