Why won't anyone help us out?! :-(

robyn1203

Really desperate so hoping that someone on here will be able to offer us some advice.
Following a mid-life crisis last year, I rented out my nice new 3 bedroom house in Banbury and moved to an ex-hotel with 12 bedrooms and a shop underneath, overlooking the sea at Morecambe Bay. 9 months later and it's time to repay the £74k bridging loan used to finance the move. The house in Banbury is sold Stc and will leave us with around £80k once the sale is complete. Sadly, this will not be in time to pay back the bridging finance so we've been looking at alternatives, with no success (in fact, complete failure!!). We can't get a residential mortgage as we have a shop (albeit it has not been open for 10 years). We can't get a commercial mortgage as we have no trading history. We can't get a secured loan as you can't secure a loan as a first charge (??).
My husband is a full time firefighter on £29k.
We've tried L&C and an independent broker but we're being told it can't be done.
Can anyone on here offer me any words of wisdom or I may just lose the plot, strip naked on morecambe beach and do a "Reggie Perrin". Thank you in advance... Robyn :-)

GMS

What is the property worth? Is it all on one title or is the shop separate? What do you intend to do with it? Is it fully habitable or in need of repairs?

robyn1203

Thrugelmir wrote: »

Seems as if you didn't do your homework prior to the move. If the property is unmortagable then sell it.

Chalk it up to experience.

Thanks for that. We did indeed do our homework and were advised that if we reduced the number of bedrooms, removed the fire alarm systems and did some basic renovations then we would qualify for a normal residential mortgage. I don't want to move - I quite like looking at the ocean with the mountains of the lake district in the background.

robyn1203

GMS wrote: »

What is the property worth? Is it all on one title or is the shop separate? What do you intend to do with it? Is it fully habitable or in need of repairs?

The property is worth around £150k and is all on one title. We have no plans for the shop but the whole building is fully habitable and in a fairly reasonable condition now.

GMS

Will the bridging company not extend the term until the house is sold? Seems to be the easiest option all round.

Another bridging loan may be possible and less expensive than trying to arrange a new mortgage if the intention is to repay with the sale proceeds

marleyboy

I would consider taking in your paperwork from the house sale (stc) to the finance company and ask for an extension of another Month or two.

One look at your paperwork, they are more likely to accept your circumstances and extend your deadline, as it is in their best interests as well as yourselves.

robyn1203

They will extend the term but only for a max of 3 months, so I'm just trying to cater for the worst case scenario. We were also hoping to raise some additional finance to consolidate existing loans onto a lower interest rate. Thanks for your help.

Thrugelmir

robyn1203 wrote: »

then we would qualify for a normal residential mortgage.

Who was the adviser?

Did ask the council about change of use? As it stands its not a residential property but commercial.

robyn1203

We were advised by our broker and 2 separate lenders. As far as the council are concerned, the occupiers have been paying domestic council tax since 2003 so they're treating it as a residential dwelling. It seems as though maybe we've been misinformed??

Thrugelmir

robyn1203 wrote: »

It seems as though maybe we've been misinformed??

Thought you said it was a 12 bedroom hotel?

Not very residential.

Did you buy a business not just the property?

robyn1203

Thrugelmir wrote: »

Thought you said it was a 12 bedroom hotel?

Not very residential.

Did you buy a business not just the property?

It was a 12 bedroom hotel which ceased to trade as such in 2003. It is now an 8 bedroom house. We did not buy the business as there was not one to buy.