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Buy to sell.
Comments
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Do you have an income now?
Development finance is the obvious route but you would need 40% deposit plus enough to get renovations underway. You may struggle to raise finance on low end value properties due to the added risk for the funder.
Income as above sorry added it as an 'edit'
By development finance do you mean bridging loans and the like?! Ive been looking quite a bit at this, concerns being, how easy is the process (ideally id like it as easy as a normal mortgage) and the second concern are the risks, say you take out a 12 month bridging loan and the property doesnt sell inside the timeframe for wahtever reason would it be easy enough to transfer the outstanding amount to a btl mortgage?!
And i know you shouldnt judge a book by its cover and all that but the websites for development finance dont appear too good (suggesting theyre a bit dodgy) how would i know who the more reliable lenders are or would it be best to approach a high street bank asking for a bridging loan?!0 -
Development/Bridging Finance is much easier to arrange than a 'normal' mortgage subject to meeting criteria, specifically Loan to Value.
Some lenders will not refinance develeopment finance, and many BTL lenders specifically exclude property developers. A minimum income is also required by many, usually 25k.
Going beyond an agreed term with bridging will incur penalties and default rates of interest.
What you are proposing can be lucrative but with figures so tight you need to carefully consider what can happen. One wrong move or setback could be disastrous for you.
Speak to a broker about finance nearer to the time you are readyI am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
TBH, I don't think you will have anywhere near enough of you own funds to embark on this adventure in the next 12 to 18 months."You were only supposed to blow the bl**dy doors off!!"0
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maninthestreet wrote: »TBH, I don't think you will have anywhere near enough of you own funds to embark on this adventure in the next 12 to 18 months.
Maybe, but if i ask the same questions in 12 months time ill be in the same boat i am now!0
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