Can we borrow 20k?

Iwanttobeatree

ok so we want a 40k budget to buy a CASH ONLY not mortgageable property.

we have 20k in liquid cash. no other debts at all.

mrs = 15.5k income
me= self employed with non taxable income (basically might aswell be no income for the record)

how can we raise 20k? will we find anyone to loan us this? if not 20k how much you think we could get?

thanks

CLAPTON

unsecured loan on an income of 15k, maybe 5k asuming excellent credit record
although a combination of OD and credit cards may make up the numbers a little

however, how are you going to pay the debt back?

Iwanttobeatree

CLAPTON wrote: »

unsecured loan on an income of 15k, maybe 5k asuming excellent credit record
although a combination of OD and credit cards may make up the numbers a little

however, how are you going to pay the debt back?

well we rent and pay 7k per year in rent which would disappear as an outgoing if we bought this place, so would 600pcm pay back the 20k debt? we could probably even pay it back at 1k a month if needed, maybe more.

any other input appreciated!:)

CH27

Why is the property not mortgageable?

Iwanttobeatree

CH27 wrote: »

Why is the property not mortgageable?

some kinda damp problem in one of the rooms, i dont think it seems that bad, its a slight gamble i guess. i haven't seen the property yet because i want to know if its possible to get the money to put in an offer.

i figure considering we normally pay 7k a year in rent then and if theoretically we stay and rent for 6 years here thats the same amount of money wasted in rent as the value of the property we're looking at buying.

im looking for a project i figure its worth the gamble, even if we had to resell the property in 6 years time for less the price we've still made profit Vs renting.

CH27

How will you afford to do the house up?
I don't think damp renders a property unmortgageable. You need to check it out very carefully.

skintdad

damp would make it unmortgageable if the remedial costs were substantial enough. i would suspect in this case that it is going to cost a fortune to rectify. also damp and the associated mold is a major health risk to anyone living in the property if you were planning to do it up gradually

skintdad

if it were a standard damp issue the mortgage company could hold part of the mortgage funds back until the damp course had been done or the problem causing the damp had been rectified

Iwanttobeatree

CH27 wrote: »

How will you afford to do the house up?
I don't think damp renders a property unmortgageable. You need to check it out very carefully.

i make between 15k - 25k per year depending on how many hours i put in, its how i saved 20k to begin with. And the mrs obviously earns money. We have very low outgoing on top of all this. So we'll do it up as we get money and hunt around for good bargains on materials.

But yeah it probably has a few problems with the property but i think it maybe worth the gamble Vs the rent we normally pay and have paid for years. There isn't many cheap options like this where we live. Even if the property fell down and we had nothing we could bounce back from this relatively smallish outlay.

Im open to any suggestions feedback whatever, thanks

Iwanttobeatree

skintdad wrote: »

damp would make it unmortgageable if the remedial costs were substantial enough. i would suspect in this case that it is going to cost a fortune to rectify. also damp and the associated mold is a major health risk to anyone living in the property if you were planning to do it up gradually

well maybe if i speak to someone i could get a standard mortgage with a small deposit and use the rest of my liquid cash to solve the damp problem straight away? hmmmm

skintdad

there are different types of damp. i remember from watching homes under the hammer that one type is catastrophic which could make house unmortgageable. who has told you that it is unmortgageable and did they specifically say because of damp?