Development Mortgage Options

FiFi2013 · 5 April 2013 at 3:01PM

Hi

Myself and partner are currently looking to purchase a property that we have seen in the local community. The property is currently a shell with the first stage development work carried out, so it is not in a livable condition.

We are happy to do the work necessary to the property to bring it back to life, and plan on purchasing and doing the work on the house to make it into a long term family home, and not to sell on. We own our current house (no mortgage) and plan on continuing to live in the current property while the development work takes place.

As the property is not currently in a livable condition, we have been informed that securing a mortgage from a standard high street lender, will not be possible.

Please could anyone offer me some advice on what other forms of mortgage/lending are available in our situation when we need to raise funds for this project?

Thanks in advance

JQ. · 5 April 2013 at 3:07PM

Would a mortgage on your existing property provide enough money to buy and refurbish the other property? If so that would be by far the cheapest and easiest source of finance.

I think there are specialist products for what you're proposing but they are expensive and complicated. No doubt one of the IFA's will be along shortly to advise.

FiFi2013 · 5 April 2013 at 3:48PM

Thank you for your advice, it is possible to potentially look at a mortgage on our existing property, but I think this would still leave us short on the total cost for the new house + renovations.

Ideally, we wanted to keep the financing of the new house away from our existing property as it is part owned within the family, so we were looking to explore other options, but if it is the only option we may need to go down that route.