Different kind of loan - is this possible?

vegas23

Hi all, hope this is the right forum for this question, have had a look around but can't find either a better place, or find this question asked before.

I may have the opportunity to buy a plot of land and build a house in a desireable location. The land will cost £100K, and the building costs etc will be similar. The aim is to buy the land, build the house and sell for profit in a 2-3 year timescale.

I don't have any capital to invest in the project, however within the family we have 3 properties with around £200K in equity but we aren't in a position to remortgage to raise cash.

Is there any way to borrow the required cash (c£200K) but defer paying any interest until the investment matures? Obviously the lower the interest the better!

Also looking to borrow from a respectable financial institution (if there is such a thing ) and not some shady loan shark.

Any suggestions welcome and thanks for reading

h4nym

There's plenty of self-build and commercial lenders who would be prepared to look at this...

Not sure about the deferral though - there would need to be a whole load of equity in the place at every turn... wouldn't bank on being able to borrow much more than 50% of the final value, and even then only in stages. Stages would help though - you wouldn't be liable for interest until the money is drawn down...

Hope this helps

H