Is this possible..???

pjjafc

Me and the wife currently rent a property from my inlaws and want to put an extension on the back and convert the loft. We have around £20,000 but will need an extra £40,000.

Now as far as I can see I cannot lend this from a bank / finance company as I am not a homeowner.

Anyone no of any mortgages / lending companies that can help?

Thanks in advance

CLAPTON

you have forgottten to tell us how much you earn and your general financial circumstances

however, no-one will give you a secured loan as you don't own the property and you are unlikely to get an unsecured loan for more than 25k (assuming you have excellent credit history, no other debt and an income in excess of 50k)

mind you it seems completely mad to invest 60k in a property you don't own

opinions4u

Would you in-laws finance the work (perhaps via a buy-to-let remortgage) and increase your rent accordingly?

pjjafc

CLAPTON wrote: »

you have forgottten to tell us how much you earn and your general financial circumstances

however, no-one will give you a secured loan as you don't own the property and you are unlikely to get an unsecured loan for more than 25k (assuming you have excellent credit history, no other debt and an income in excess of 50k)

mind you it seems completely mad to invest 60k in a property you don't own

Hi, we do have an excellent credit history and income is over 50K.

Reason for wanting to invest the £60K is the house will be ours later down the road when the grandparents eventually depart us.

Thanks for the replies

pjjafc

opinions4u wrote: »

Would you in-laws finance the work (perhaps via a buy-to-let remortgage) and increase your rent accordingly?

Thats an idea worth thinking about. With us eventually becoming the home owners anyway maybe worth buying it off them now for a "reduced price" before the tax man gets hold of the inheritance? (grandparents in there 70's)

CLAPTON

the circumstances are not very clear but from what you say it would be massively better if you could buy the property from the grandparents rather than relying on inheritance.
if they are only in their 70s then inheritance could be 20-30 years away and a lot can happen in that time

pjjafc

CLAPTON wrote: »

the circumstances are not very clear but from what you say it would be massively better if you could buy the property from the grandparents rather than relying on inheritance.
if they are only in their 70s then inheritance could be 20-30 years away and a lot can happen in that time

Hi, basically the circumstances are they own 3 properties. 1 they obviously live in, 1 they rent to us and 1 they rent out of the family.

We pay monthly rent to them but we have a young family and space is getting tight so wanted to extend the back and convert the loft.

Shovel_Lad

pjjafc wrote: »

Reason for wanting to invest the £60K is the house will be ours later down the road when the grandparents eventually depart us.

A lot of things can happen between now and then. For instance, what would happen if one or both requires long term care in the future? I know the Government keep talking about changing the rules but they have said this for years and nothing has happened yet. Your shiny new extention could end up being sold along with the rest of the house to pay for it.

Voyager2002

Have you asked the landlord to pay for the work on her/his property?

Of course, once the work is complete and the property is worth more, you should expect to pay a higher rent.

Yorkie1

Shovel_Lad wrote: »

A lot of things can happen between now and then. For instance, what would happen if one or both requires long term care in the future? I know the Government keep talking about changing the rules but they have said this for years and nothing has happened yet. Your shiny new extention could end up being sold along with the rest of the house to pay for it.

I agree. There is no guarantee of what will happen years into the future.

getmore4less

3 houses?

If there total asses are above nill rate bands then investing £60k into the property will see £24k dissapear in IHT unless structured properly.

Buying gefore death will trigger a CGT calculation.