Can we borrow 20k?

Iwanttobeatree

i rang up and they said, did you know the property isn't mortgageable and therefor cash only? im like nope.

the property isn't currently occupied and has bad damp problems in one of the rooms, but hey i dont need all the rooms at first.

maybe i'll ring back up but i dont have much experience and the estate agents tend to hide information. ill ring this afternoon.

greenface

skintdad wrote: »

there are different types of damp. i remember from watching homes under the hammer ?

Me too Martin = damp squid & Lucy = Damp dreams. :rotfl:

skintdad

damp = mould. breathing in mould spores is dangerous and can kill
damp can also make the building structurally unstable and therefore unsafe. it is unmortgageable for a reason and unless you are a professional builder yourself then you are exposing yourself to some serious financial commitments. as you say yourself you don't have much experience, if i were you i'd walk away and find another way of saving money

downsizer3

Find out exactly what the problems are with the house. Not only can some kinds of damp / rot be dangerous in terms of health / spores etc in the air - they spread quickly - the house could become dangerous and be condemned by local authority quite quickly. You end up with nothing and no house.
Personally - as someone in the construction industry - I wouldn't go near it with a barge pole.

RobertoMoir

So you see this house and think "bargain" and the surveyors hired by the mortgage lenders see this house and think "not on your life".

Ask yourself who knows more about evaluating the condition of a house. Then walk away.

Notmyrealname

I would pay for a full structural survey first. It might be the best £1000 you ever spend.

Iwanttobeatree

thankyou folks so i rang up.

apparently its not mortgageable cause of some kind of legal dispute between the freeholders of the property for upkeep of the building, its a maisonette you see.

it may not be mortgageable cause of the damp but the estate agent first mentioned the legal dispute, what you think ? BS or truth ?

apparently the damp isn't that bad estate agent reckons? (lol) but yeah i take your opinions on board Skintdad, downsizer, Roberto and notmyrealname. thanks

Iwanttobeatree

tomjonesrules wrote: »

How much would the property be worth if there was nothing wrong with it? I assume it is leasehold, and if so, what are the relevant service and ground rent charges?

i would estimate it being worth 90 - 100k i reckon if done up nicely with no problems

its leasehold, £50 per annum ground rent, 125 lease left

its got gas, elec and water

Iwanttobeatree

tomjonesrules wrote: »

How long was the original lease for? Unless it has been renewed (which seems unlikely in such a scenario), 125 years seems an unlikely figure, as leases are normally for 125 or 999 years (although there are exceptions to this).

Service charge? Who pays for the buildings insurance?

Does anyone live in the surrounding properties?

An argument between the parties to the lease will no doubt affect the value of a property, but rarely to the extent that you describe. If a dispute did cause such a drop in value, I would bet that resolving that dispute will cost many thousands. To be honest, I would be surprised if you even made it to completion - any decent solicitor would be reluctant to allow you to take on such a liability.

I am interested to know more about the dispute - let us know what you find out.

Term of lease: 125 years from 2008 it says

i dont know about the buildings insurance

there is a shop below, shops either side, with flats up one side. im 99% sure everything is in use around it by the looks of it.

im going to probably try and find out more and report back but it wont be today cause im going to go there and ask in person probably in next couple days.

i see your point about the value, also the damp must be bad to a certain degree else why would there be a dispute in the first place.

iolanthe07

I make between 15k - 25k per year
me= self employed with non taxable income

How are you able to get away without paying any tax? It isn't voluntary, you know.