Could Buy To Let Turn Our Fortunes Around

bon_3

We borrowed £65,000 so we could build a new property on land with the property we live in. It is secured on the property and a charge is registered at the land registry. Both properties are registered on the same title for the time being. We also have two unsecured loan adding to £24,000 and credit cards to the value of £6,000 and ***** mortgage £58,000. I have received letter from ***** who have stated that they would have offered mortgage on new build if we had used a different 10 year warranty on house build(nothing wrong with warranty they just don't recognise it). Otherwise, at day of completion of sale(or day before) we were given the condition that we paid these debts. The original bungalow would sell for £115,000 to £125,000 (£115,000 being modest and £125,000 our cap(stamp duty)). Ideally we would have remortgaged with *****( mortgage being on new build as we move in) and pay the remaining £95,000 using proceeds from sale (this accounts for estate agent and solicitors fees). This would leave a surplus of at least £20,000 for us to further improve on the new property. The way the mortgage companies see it doesn't take this logic into account which is why I thought it might be easier to raise enough money to pay secured loans when we sell original bungalow. This would mean that we might be able to then raise a mortgage on the new new property subject to us paying the £30,000 we would have in unsecured loans. Haven't been successful in applying for unsecured loans or mortgage from one of the companies that accept the 10 year warranty. If I sell original bungalow I have to settle secured loans legally.
The sum of these is greater than value of the bungalow. Is there somewhere to get unsecured loans at reasonable rate or any other suggestions please? Bear in mind on low income. Time is running out.

Zammo

!!!!!!....................................?

Doozergirl

bon, it might be more helpful if you could give us values of both properties and the name of the company you have the 10 year warranty with.

ALso, are you trying to sell both houses? Your post is a little unclear and doesn't provide us with what your aim is and how you've gotten to this point.

If you could post again, we'll try to help.

Or just say "!!!!!!" again :rolleyes:

nelly_2

Yeah thats a tad confusing to say the least!

lynzpower

Its also Ok you can use company names- instead of the stars- other people who have mortgages/.loans with the same co might be able to help you out.

I guess its Abbey- but it could be wrong.

I wonder whether the issue is could you not get another certificate to sign the property off - doozer- any thoughts?

Doozergirl

lynzpower wrote: »

I wonder whether the issue is could you not get another certificate to sign the property off - doozer- any thoughts?

I think the insurance company has to inspect at different stages in order to provide the certificate.

I'm not entirely sure though. Not officially built a new house (yet!). That's next on the list!

terrierlady

is the warranty with Zurich?

hearts

Try here m8. They offer good advice for the finance you seem to require.
https://www.singingpig.co.uk

Looks maybe like a bridging problem but Im no expert and its a bit confusing.

bon_3

I'm worn out, at the end of my tether so sorry if unclear. I want to move out of original property and in to new build. The original property should fetch between £120,000 and £125,000. The new build has been valued at £135,000 but this is definitely under; It would fetch between £145,000 and £150,000. Selling both properties would have grave tax implications which would put me in a position worse than before new build. The 10 year warranty is with SELF BUILD ZONE.
I got to this point in the following way:
A succession of bad mortgages and low income meant that we borrowed to keep house. This got to a point where we either do something or loose property. Estate agent suggested we could build a house. Eventually, despite a massive battle with planning got permission. Low income etc. meant that the usual lenders wouldn't entertain and had to take out another unsecured loan to cover mortgage etc. in the meantime. Got secured loan at high rate through a broker. Hoped for the best and assumed that mortgage company***** would transfer the mortgage on the sale of the original bungalow as it was supposed to be portable. They admit I was misinformed and have refunded valuation fee and waved early repayment penalty.

bon_3

The warranty involved staged inspections. Yes this is usual. The mortgage company is halifax

Doozergirl

Have you been to see a whole of market broker like London & County? They should be able to seek out sepcialist mortgages for you. Halifax were always unlikely to be flexible, even though they own other mortgage companies that are!

I understand now why you are selling the first home.