Can I get a mortgage on a building I am renovating?

safara

Hi All

We have bought a property in need of complete renovation. We have started this process with funds we have (new roof, rewiring, re-rendering externally and other works etc). Work is going well and the place is turning into a home.

But, as is always the case, funds are getting tight. Can we get a mortgage secured on the property to finish off the works like kitchen installation, decorating, carpets etc, before we actually move in? Would not be a large mortgage, as only needed to help finish off the works, maybe about 5% of the properties value.

Thoughts?

Cheers.

cattie

I don't believe a property without a working kitchen, (nor a working bathroom) is mortgageable.

PasturesNew

Did you pay cash for it so far?

Generally, without a kitchen, 99.99% of houses are unmortgageable,
If you bought it with a mortgage in the first place, it might now be worth a lot less because houses mid-renovation are worth less because they present a much bigger risk.

Also, you say 5% of the property value is what you want - there tends to be a lower limit for a mortgage of £25k.

Maybe you could look into alternative forms of funding in the short-term, then re-mortgage once it's finished.

safara

Yes, bought the property with cash, and so far using cash for the renovation.

I have seen mention of properties not being mortgageable without a kitchen or bathroom... So, if this were the case would need to get a kitchen sorted. What constitutes a working kitchen? A working cooker, a fridge and a sink?

May well need to consider other avenues of short term borrowing, but dont want to get caught up in high interest non secured loans etc....

dunno...

dimbo61

Some lenders still offer self build mortgages and will lend on the value of the site and the work done so far.
Speak to a " whole of market mortgage broker "

drummer_666

safara wrote: »

What constitutes a working kitchen? A working cooker, a fridge and a sink?

For it to be considered to have a kitchen, it can be a really bad kitchen. I.e. a sink and a point for an oven. Doesn't need an actual oven or a fridge

pretty sure it doesn't need worktops either

if they were fussy I'd say, whack in an old chest of draws, your oven point and put an old sink in (not sure it even needs plumbing as this isn't generally checked when selling as in most empty houses water and electric etc is all turned off) and hey presto

Hoof_Hearted

We renovated a house and wanted to port our mortgage to the new one. They wouldn't even value it until the kitchen and bathroom were in, which would make it very tight to the moving date. In the end we just took the hit and paid it off. I don't think that conventional lenders would be interested in providing a mortgage -- they have their rules you know!