Non-domestic property mortgage?

cc004-2

Hi folks,

Apologies if this is in the wrong forum and for sounding like a NOOB...

I'm trying to find out if it's possible to get something like a mortgage on a non-domestic property for sale at auction by a local estate agents? It's a workshop/storage building, but it will be for a hobby and not run as a business. I've been informed that as it's not a dwelling it isn't mortgagable. Also, as it won't be run as a business I can't get business finance.

I'm 36, have enough savings to cover approx 15 to 20% of what I'd hope to pay for the property. I don't own any other property that could be used to re-mortgage or as a security. From a few quotes from the high street banks and building societies, I've found that I can quite easily afford mortgage payments over 20 years for capital+interest.

It's been suggested that I find some rich parents or a lottery win, don't think that's gonna happen somehow!

Previously I have had a marine mortgage for a smaller sum, which was secured against the boat. This is now all paid for.

So, question is; is there something like a mortgage available where I could use this non-domestic property as the security?


Many thanks,
Chris.

Thrugelmir

Have you spoken to a bank regarding obtaining finance?

The likelihood of obtaining finance at mortgage rates is nil. So high an interest rate could you afford?

holly_hobby

A personal loan would be the best route, you won't secure a mortgage (commercial, or otherwise) for a "hobby shed", which is in essence what it will be.

Or an investment bank, whom may be able to look at additional security in respect of the loan.

I was going to say, why not use a shed in your garden for your hobbies, but realise from your post that you live on a boat. (I think !?), which explains the reason for your purchase. ( are there such things a remortgages for house boats ? .. could that be an answer with the lender your sourced your marine finance from ?)

In a nutshell this isn't one for the high st.

Hope this helps.

Holly

cc004-2

Thanks for the replies. The answers are what I was expecting.

I actually still live with my parents, as I've been slowly saving up for something like this.

The boat mortgage was paid off early as my parents had a small inheritance, and effectively I own half of it. I use it as digs 1 or 2 nights per week to save travelling costs to work. As I'd had that mortgage which wasn't for a bricks-and-mortar house, that's why I was asking if there was something similar, probably not on the highstreet, that could be used in this case.

My hobby would need a big shed, 30' x 50' x 15' minimum, which wouldn't fit in our garden LOL!

Thanks again to you both, I'll have a bit more of a look around with your suggestions... :beer:

Cheers,
Chris.