Mortgage Advice for a not so straightforward situation

getmore4less

The current do nothing situation has the mortgage paid off in 2 years

Not clear how that is being done.

There may be some repayment vehicle or it is getting paid from income.

That reduces the total required long term to be the development costs which will be much lower LTV on any mortgage assuming the project is financialy viable.

Still does not solve the intermediate situation of getting any funding to kick start a project.

If there is a repayment vehicle, current value covers costs, the current lender agrees to the conversion that might be a way forward but still leaves the refinancing at project end.

holly_hobby

I would be extremely doubtful that the current residential lender, will agree to the property being converted into 2 SC flats whilst on a resi set-up - but if they remain on 1 deed which is freehold it may be possible .... and I do love surprises ! But I do think the initial funding to kick start it all, will have to be on a semi-comm finance in some format.

Its really over to an active broker for them now ..... having a chat with the local planning officer to see the likely hood of successful planning permission, prelimary plans drawn, and seeking guidance form local agents regarding re-sale values, estimated rental income, etc... etc...

Do your leg work on this one .. !!!

Holly

gingerjimlover

Going to speak to a broker on Saturday so we will see what they say.

There was an endowment but FIL missed payments some years ago due to redundancy this is why there is still money outstanding with 2 yrs left. I need to look into this and PPI as there could be some miss selling there.

It would be so simple of the Original lender just agreed to the conversion as the outstanding mortgage would be 29% of the flat value - just one! and let us take the mortgage over. I know, I know it's not that simple.

Dave_Ham

It would be even simpler if someone stopped you in the street and handed over the money in new £50 notes..

Seriously, just ensure the broker you see on Saturday knows his stuff and not just says he does.

This is an easy way to burn money if done incorrectly and without lender visibility. Good broker and solicitor are key and be ready to pay a sensible fee for their advice.

I wish you well, the rest sounds practical if already done in the road. Also, be careful if you go full steam ahead and after separating you may need to wait 6 months to re-finance and additionally you may well have restrictions as it is newly converted so do not stretch yourselves cash wise..

All the best

gingerjimlover

Thanks Dave.

Got my fingers crossed on the Euromillions ticket I have just purchased just the raffle prize would solve the issue.

holly_hobby

gingerjimlover wrote: »

Thanks Dave.

Got my fingers crossed on the Euromillions ticket I have just purchased just the raffle prize would solve the issue.

Damn ... that means I'll have to split it when I win on Friday ... well a girl can dream ....

H x

gingerjimlover

holly_hobby wrote: »

Damn ... that means I'll have to split it when I win on Friday ... well a girl can dream ....

H x

Ah but there are 100 millionaire raffles so there are 101 draws in which we can win

I don't mind sharing as long as it covers this situation then I will be content