non standard mortgages

syne909

Is there any recommendations on how to go about getting an unusual mortgage?

I want to buy a house that is non standard (airey) and then straight away rebuild (to the prc repair spec) this will increase the current price of the house.
eg house £60k + £30k for repair = £140k new value

although I have a mortgage in place (for £120k) from my bank but they are not interested in lending on an airey.


If I want to buy the house at £60k but then need a £30k loan to repair so then have a mortgage and loan running in parallel?
or is there another way?

kingstreet

It is my understanding that such construction is unmortgeable if it's in its original condition, as it is deemed defective under the 1984 HA.

The only way you can purchase such a property with a mortgage is if it has already been repaired to the required standard.

No lender will take the risk on lending to you on the basis that you intend to repair it.

syne909

I wondered how the current owner got a mortgage?
Do you have any advice on how to approach this problem?

My only other thought was to simply get a cash loan of £90,000 and buy and re-build, then It should be mortgage-able afterwards to pay off the loan and create a debt that was slightly cheaper in the long term.
could this be done ?

kingstreet

You need to pay cash for the property and repairs. How you raise the cash is anyone's guess.

It should be possible to remortgage after that but remember many lenders won't entertain a remortgage application until you've owned the property for six months or longer.