Niche mortgage for a renovation project?

bellringer1

Hi everyone, I use MSE but have signed up a new user name so my hubby be party to your replies to help us.


Basically, we have sold our house to a cash buyer, at full asking price. Lucky! We are trying to move nearer my place of work. Very limited property options.

We have spent many years researching and viewing old building, chapels, churches, barns, ramshackle AND renovated.

We have been lucky enough to come across a Chapel to convert in the exact area we would like to move to. It was sold, but it fell through last week as the purchaser had a stroke.

So, we need a specialist mortgage, but my IFA, he says no, based on not having 2-3 years accounts, we need both our incomes.

These are the details...

Purchase price £200k
Renovation Costs £120k
Final estimated price £600k (it is in a conservational and natural beauty area, prices are extortionate!)

We have the 15-20% deposit, and some money for renovation costs, fee's etc. Need circa £320 mortgage.

What we don't have is 3 years of accounts, we are both self employed.

Husband has income of £18500 10-11 £42000 11-12 and estimated £43000 for 12-13

I have only been working 1.5 years (raised the kids till then!)
£15600 11-12
£38000 estimated 12-13
£59000 13-14

Our estimates are based on accounts already in spread sheets, except for feb & march this year, so are pretty accurate.

Both our businesses have grown rapidly, husband has spent 20 years building his businesses, and always had high expenses, hence low income, as he has commercial mortgages to cover, and related expenses running them.

IFA says wait till April, file and we will be fine. Great but....the chapel has many other bidders.

Its not listed, there are no graves, and after talking to planning dept, seems we can change its use without too much trouble.

I've scoured the net, but can't find the specifics.

The only other option, buy it for £200k, sit on it till april and then remortgage with our 2 years accounts in place? Possible?

Thanks guys!

bellringer1

Forgot to say, it is water tight, doesn't need new roof etc. Already has kitchen, utilities etc. floors look good, Suprising to find it in such good condition. Outside looks good too, builder inspected initially and confirmed it was in very good condition.

bigadaj

Current valuation would be 320 wouldn't it? So you'd then need a 100% mortgage on current valuation.

holly_hobby

Buildstore may be a home for you .... specalise in renovation, conversion, self build finance, whether the current income situ will be an issue I can't advise .....

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

Hope this helps

Holly

bellringer1

£320 overall, but will have enough cash for 20% deposit, and fee's and some upfront build work.

OUr problem is getting a mortgage through on just 1-2 years accounts and projections from accountant. If we wait till april, we will have what we need, but will lose the property. Dilemma.

bellringer1

I *think* Build store need 3 years of accounts...

Thrugelmir

Projections are just that. Unless you have guaranteed income. Which is backed up by signed contracts. Anything else is pure speculation. The fact your Accountant drew them up has no relevance.

bellringer1

I appreciate that, of course!

What I am asking is there a lender who will lend on anything less than 3 full years of returns for a self build/renovation mortgage?

Thats the crux of it, and thought smeone here ight be able to point me in the right direction, buildstore want 3 years I am sure.

Thrugelmir

Personally I would recommend building more capital. So that you are in a position to at least pay for the "building and land" outright on your choosen project. The type of project you are proposing is extremely high risk to a lender even specialist.

holly_hobby

bellringer1 wrote: »

I appreciate that, of course!

What I am asking is there a lender who will lend on anything less than 3 full years of returns for a self build/renovation mortgage?

Thats the crux of it, and thought smeone here ight be able to point me in the right direction, buildstore want 3 years I am sure.

Sorry my suggestion wasn't suitable - as I said I wasn't sure on their income requirements, but hoped it may be helpful due to the conversion requirements you have.

Perhaps you would be best actually engaging the services of a broker (yes doubtful their advice will be free, and there may well be a fee), but if there is a home out there whom will accept your limited accounts coupled with your very specific requirements, they will be able to advise without any further delay or time wasting.

Wish you well

Holly