100% mortgage using two other properties as security

combwork

We live in Scotland and own a large 4 bedroom Victorian house built on three levels. It's set back from the road, has enough parking for 3 cars. No garage but room to build one. There's a £70,000 mortgage secured on it. 2 structural problems:
1). Balcony retaining wall moving away from the house. Not by much, just over 2cm in 18 years. The load bearing wall is 7ft behind the retaining wall and is not affected. A survey by FAIRHURST's (structural engineers) carried out 2 years ago confirms this and advises how best to fix the problem.
2). Wood rot in an area of approximately 1 square meter. No sign of mycelium or musty smell so almost certainly wet rot. There is no sign of sag in the roof but because of the roof shape, the only access would by lifting slates.

Decoratively the house is in poor shape but perfectly liveable in. Local Estate Agents have put a market value as it is now at "approximately £200,000" (going by local sales it's more likely to sell for £170,000). My wife owns a 2 bedroom flat in Dundee. No loan or mortgage, realistic sale price £70000.

There is a smaller detached house on the market at a fixed price of £115,000. It's been there a while so could possibly be bought for nearer £100,000.

Is there any way of raising the purchase price using our present house and flat as security? If we bought the smaller house the larger one would go straight on the market. If necessary we would sell the flat as well. Our present mortgage is with Mortgage Express who are no longer taking on new lending.

I am self employed and following 2 strokes plus an epileptic fit went into mortgage arrears. Peaked at £2,100 16 months ago, now £470.

HappyMJ

You can use multiple properties to secure the funding. You will need to pay the valuation fees twice though. Self employed with little income and some mortgage arrears will be more of an issue.

maninthestreet

Self-employed? How many years audited accounts do you have?

combwork

Thanks maninthestreet. Up until 5 years ago my tax figures were done by an accountant. Now I do them myself on-line.

Also thanks to HappyMJ. The income now isn't bad at all; as you say though, previous credit history could be the problem.

As we would be buying the smaller house I guess it's value could be taken into account, so the security offered would be one flat with no mortgage or loan secured on it, one house mortgaged for just over 1/3rd of its market value and the new house.

Put these 3 together and a new mortgage of £120,000 plus the outstanding mortgage (£70,000); combined total £190000 would be secured on three properties with a combined value of between £320,000 and £340000.

It's very difficult putting a market price on the larger house but if it sold for the minimum price it would come close to clearing the new mortgage. I've talked with a man at Mortgage Express who confirmed that they were no longer taking on new business but that income figures were not as important as 'loan to value'. According to him a £190000 mortgage secured against property worth (worst case estimate) £300,000 could be available. The mortgage would be reduced once the larger house was sold.

All these figures are estimates and don't include our legal costs but I think they're realistic. Like a lot of people we're asset rich (in theory) but cash poor.

The idea would be to end up with a house fully paid for, cheaper to run and to be able to earn enough to take time off occasionally.