Mortgage on house with no kitchen, toilet or boiler

Vegeta

From what I understand, if a house has no kitchen (stripped units, no sink), no toilet or sink in bathroom and no boiler and also no radiators, no normal lender will be willing to offer a mortgage on it due to it being uninhabitable or will offer a mortgage but with a 100% retention i.e another way of saying no.

Correct?

opinions4u

You won't find a lender who'll say yes.

But a 100% retention allows you, with seller agreement, to install a kitchen / bathroom before completion.

Make sure you do it after exchange of contracts and ask your solicitor to ensure you are protected if the seller backs out once you've improved their house!

holly_hobby

It all depends on the surveyor comments on whether its 100% retention or complete rejection.

As you are obv aware to be considered suitable security, the property must have a functioning kitchen and bathroom, modern elecs (ie not 2 core).

The likes of no double glazing, no central heating, dated decor, etc will not result in a full retention, but will obv affect the market valuation.

How you manage this will be either cash purchase, then remortgage when all works completed (min 6 mths following completion), or you come to an agreement with the vendor to have the works done (and re-inspected) pre completion.

Danger is even after exchange, the vendor can still pull out (albeit they are contractually obliged to complete, this does not mean it will happen, and you would have to sue them for reasonable losses and take the court route), so you are taking a change if you fund all the works yourself on what will be a handshake.

Hope this helps

Holly

ACG

Is it a Buy to Let property? If so are you an existing landlord?
Tthere is one lender im aware of that will go to 75% of what the property will be worth once all work is completed, presuming you are a landlord and it is a property you will be letting out.

holly_hobby

Prob is funding the works pre completion though, which as I suggested would ideally be cash given the issues.

Also don't qualify for TMW light refurb.

Holly x

ACG

Off memory i dont think its TMW, i think its a small b/s, but i could be wrong.

You could also do bridging, which i think is available upto 70-75%.

Vegeta

Does it make any difference if the house does have a toilet (water switched off though) but no sinks (kitchen is missing all unit doors and gas hob), no boiler, no radiators (exposed pipes only) or would it still be classed as uninhabitable with the lender putting a 100% retention on a mortgage?

The main difference from my original post is that this house that I saw had a toilet in the bathroom but as mentioned, no sinks in the house.

Cknocker

I'm assuming the property is a renovation project, if so it is possible that you could get a self build mortgage, try Ecology or Buildstore - there are others.

holly_hobby

Vegeta wrote: »

Does it make any difference if the house does have a toilet (water switched off though) but no sinks (kitchen is missing all unit doors and gas hob), no boiler, no radiators (exposed pipes only) or would it still be classed as uninhabitable with the lender putting a 100% retention on a mortgage?

The main difference from my original post is that this house that I saw had a toilet in the bathroom but as mentioned, no sinks in the house.

It has to be fit for habitation.

So if we have functioning sanitary ware in place (albeit the water needs turning back on), that meets the requirement - it doesn't matter if its 1970s advocado green, as long as its working.

A kitchen however without a sink, water facility, cooking points, exposed pipe work (ie unfinished works), is not habital (central heating is irrelevant for determing habital space).

In that case, although the bathroom would pass, you'd fail on the kitchen, with a retention put in place.

In situs such as this, I always recommend contacting self build lenders (who are more akin to lending on property in various stages of completion), or this may (depending upon the rest of the house) a light renovation lender.

In all cases (and if the vendor won't address)you will will have to fund the cosmetic works reqd first hand, and then apply for drawdown of the funds.

Hope this helps

Holly

Vegeta

The house isn't a self-build, it's a repo where the previous owners ripped out nearly all the fittings and fixtures.

So, it isn't enough to just fit a sink and cap the water pipes between exchange and completion to make the house habitable? The works have to be proper i.e basically fitting a new kitchen between exchange and completion?

Cknocker

http://www.buildstore.co.uk/finance/renovation-conversion-mortgages-how-they-work.html

These mortgages can be used to renovate a property - what you have is a minor renovation. With the accelerator mortgage the payments are up front which would solve your problem.

If they are willing to lend on a property with no windows or roof, why wouldn't they lend on a property with no kitchen?