Help! - my first second mortgage buy to sell project

dafcjim

Hi there

Please can you shed some light on this one?

I have a mortgage already and have about £95k to pay off.

I have recently seen a house that has been repossessed and would like to purchase it with the potential to make about 10k – 15k profit, do it up and sell it, within 12 months.

However, can I get another mortgage? – I mean buy to let mortgage are 35%? – So what would a buy to sell (second mortgage) be?

I am worried that they might not consider me, but I might be able to get an investor to lend the 10% deposit (8k).

how does this work? – I want this to be my first step and many people buy to sell projects, or am I looking at a lost cause?

[FONT=&quot]Many thanks

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R_P_W

So you want an investor to lend you 8k when you may make 10k profit? You could make zero, you could make a loss!

What cash do you have available for fees, renovation costs?

ACG

If the property is bought for £80k and sold for say £90k then the investor would get the £8k back (the difference between £72k and £80k) the OP still gets their £10k before deductions.

But to be honest OP, on a property that value with a £10-15k profit (presumably after the cost of doing the work) to me is very risky. There isnt a great amount of profit in it, not enough to warrant any risks.

What happens if you buy the house and something crops up you hadnt budgeted for? Have you accounted for estate agent fees? You might earn a bit of money but for £10k profit in 12 months its not enough in my opinion.

kingstreet

This is commercial "property development" finance, not a residential nor buy to let mortgage proposition.