How does a pensioner get a mortgage?

bigadaj

OP most of the responses were perfectly reasonable, and the fact that its split itnto flats is both pertinent and nothing anyone could assume.

To do the required work will mean that you become a major developer, and whilst there is perceived value at sale there is much actual risk in achievi g this, selling to a developer would hand over some profit but also reduce risk along the way.

Sale value is also relevant and I don't understand why you are being cagey, everyone is anonymous here if they want to be. Solutions may differ if we're taking a million, five or ten. If this is central London then we have seen many large houses that have been split into flats now being put back as family homes as there is more value.

Jimbo1976

As Dave Ham has suggested bridging would probably be cheaper than equity release taking into account early repayment charges. If you mother isn't going to live in the property and is doing it up to sell it then it would probably be classed as non regulated bridging, rather than regulated bridging (the difference being that regulated bridging is on a property you intend to live in)

You should be able to borrow/or roll up the interest payments, so if she borrows £150,000 at 1% per month then thats circa £18k (for one year) so on sale she pays back £168k (this crude calculation does not take into account the interest on interest)

A bridging lender would not be worried or bothered by the fact that the property is split into flats, they would look at the value now and after the work is done.

The idea that you can spend £150,000 to make £300,000 seems to make more sense now you have explained that the property is currently in flats. Though the fact that developers/builders have not expressed interest in buying at the current price, if they can buy it and then spend less than £150,000 (as they would not mark up their own costs as they make their money on sale) and make a £300,000 gain does make me nervous

If you are interested in discussing bridging finance, speak to a mortgage broker. It isn't cheap but it may help you finance the development. However please do as much research as you can. Ask other agents what the property in its finished state would reach, compare this with any recent sale prices and make sure you build in a safety margin for any cost overuns

ILW

Why not just sell to a developer and she can get on with her life?

Conrad

There are other imaginative solutions.
For example a third party is bought onto the deeds and finance sorted that way which will allow the splitting of the property into 4 deeds.

However, such a person will want a very decent return which will run into tens of thousands.

Euqity release wont work if you want to split the property into 4 deeds as the equity release firm are not in that kind of 'developer' market at all.

Bridging will not work unless they are certain your Mum has moved out of the property.