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Retention on Mortgages
marathonic
Posts: 1,789 Forumite
NOTE: I accidently posted this on here and re-posted on the Mortgages board as I thought it would get a better response.
https://forums.moneysavingexpert.com/discussion/comment/53557601#Comment_53557601
I’m on the market for a house at the moment and there’s an estate near us where the developer went bankrupt and a lot of houses are for sale that are incomplete. One that I’m looking at is just the shell and needs EVERYTHING done inside – plastering, bathrooms, kitchen, etc.
A mortgage broker has told me that I’d get approved for a maximum mortgage of £110,000 or so for a ‘normal’ house that doesn’t require work.
One of the incomplete houses is up for sale for £120,000 and, due to the un-mortgageable nature of the property and the length of time it’s on the market; I’d guess £100,000 might secure it.
If I had enough money to complete the works but required the full £100,000 mortgage, what are my options?
From reading other threads, I wouldn’t be able to get £100,000 until the work is complete and, in fact, am likely be able to get no mortgage as it has no bathroom, kitchen, etc.
A family member has sufficient money to purchase the property but I wouldn’t like to proceed without a GUARANTEE from a bank that I will, in fact, be able to get a mortgage on completion of the work – so that I could pay him back his money (with interest of course).
Considering the fact that the eventual mortgage would be the same as the initial purchase price, what are the chances of getting approved for a £100,000 mortgage with a 100% retention and, if it’s possible, how long do the banks typically give you to complete the works and draw down the mortgage?
The eventual LTV would be less than 60%.
https://forums.moneysavingexpert.com/discussion/comment/53557601#Comment_53557601
I’m on the market for a house at the moment and there’s an estate near us where the developer went bankrupt and a lot of houses are for sale that are incomplete. One that I’m looking at is just the shell and needs EVERYTHING done inside – plastering, bathrooms, kitchen, etc.
A mortgage broker has told me that I’d get approved for a maximum mortgage of £110,000 or so for a ‘normal’ house that doesn’t require work.
One of the incomplete houses is up for sale for £120,000 and, due to the un-mortgageable nature of the property and the length of time it’s on the market; I’d guess £100,000 might secure it.
If I had enough money to complete the works but required the full £100,000 mortgage, what are my options?
From reading other threads, I wouldn’t be able to get £100,000 until the work is complete and, in fact, am likely be able to get no mortgage as it has no bathroom, kitchen, etc.
A family member has sufficient money to purchase the property but I wouldn’t like to proceed without a GUARANTEE from a bank that I will, in fact, be able to get a mortgage on completion of the work – so that I could pay him back his money (with interest of course).
Considering the fact that the eventual mortgage would be the same as the initial purchase price, what are the chances of getting approved for a £100,000 mortgage with a 100% retention and, if it’s possible, how long do the banks typically give you to complete the works and draw down the mortgage?
The eventual LTV would be less than 60%.
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