First Time buyer - no deposit

knighty400

Hi All,

after some advice please, please bear with me as its not straight forward!

I am buying a plot of land from my parents which is adjacent to there house with permission to convert it into a 1 bed studio, buying for £50,000 and it will cost £30,000 max to do the work, it will then be worth at least £120,000.

I earn £30,000 a year, i have a loan for £12,000 which i got for a car but then I didnt buy the car and am spending the £12,000 on the works. Am I likely to be offered a mortgage for £80,000 which I would then pay off the £12,000 loan and also my credit cards which I have been using to also fund the project. I also wont have a deposit as such but I will have £40,000 in equity in the property due to the works I have done.

Many thanks in advance

kingstreet

When/how are you buying the land?

How are you paying for the build?

When were you thinking of applying for the mortgage, before you buy the land, during the build, after completion?

Have a look here for ideas;-

http://www.buildstore.co.uk/finance/

Zero_Sum

why not build the house on the land as a leasehold, then when its built, remortgage the house & use that money to buy the freehold from you're parents for £50k. It could make it easier to get the banks to lend you the money

Thrugelmir

If the build cost is only £30k presumably it's nearly complete?

whitepaper

Maybe it's a shoebox in London, and the OP is getting the land for 1/10th of it's actual value from mater & pater?