Can this be done?

RobertoMoir

acs wrote: »

The professionals think it will.

If they're professionals, I'm sure they used a lot of weasel-words that don't actually add up to will for a start, and if they didn't then they're not as professional as you might think.

acs wrote: »

Anyway, as I say, the risk element is something I've to weight up....first, I need to figure out if I can finance it.

That's the thing. The bank will need to weigh it up too, and I suspect they'll say "no" in this current climate. Property has been shown to simply not be the solid gold banker that people thought it was 7 years ago, or so.

acs_2

mrginge wrote: »

Why has no-one else snapped up this bargain?

In fact, why aren't the current owners spending the 25k to make 50-80k clear profit?

Perhaps you could ask these 'professionals' to lend you the money, since its such a gold mine.

in order

Because its been on the market for around a week.

Because theyre deceased

Ah, you disagree with the 'professionals'...so you're rubbishing them.

Thanks for your time.

acs_2

Guest101 wrote: »

Just to check, professionals, as in surveyors or estate agents?

Professionals as in a surveyor, a master builder and a family friend who has made his millions in property development.

acs_2

molerat wrote: »

And you expect a lender to gamble on that risk ?

I dont/didnt know, thats why I'm here to ask.

acs_2

RobertoMoir wrote: »

If they're professionals, I'm sure they used a lot of weasel-words that don't actually add up to will for a start, and if they didn't then they're not as professional as you might think.

I take your point on this. They're a trusted bunch. I haven't just opened the yellow pages and found the first name on the list. I have working and personal relationships with them. I guess its just a case of taking what they say on board and making a decision based on that.

RobertoMoir wrote: »

That's the thing. The bank will need to weigh it up too, and I suspect they'll say "no" in this current climate. Property has been shown to simply not be the solid gold banker that people thought it was 7 years ago, or so.

Again, youre probably right, but as i mentioned a couple of posts ago, I wasnt so sure so i came to ask, but I got some typical comments of folk who are offering the worlds best opinion without knowing all the facts, and some who have been helpful.

sonastin

The mortgage product has a max LTV %. The bank will lend upto that maximum % of the purchase price. You'll have to make up the difference with your deposit. Anything you've got left over is available for carrying out the work on the house. Anything you've got left after doing the work can be used to overpay the mortgage (if you have a product that permits overpayment) to get repayments down.

I am not sure I understand how you think borrowing more to fund the work will leave you with a lower mortgage repayment? The purchase price + refurb budget is the amount of money you need to complete this project. You need to make this up out of deposit + mortgage. However you slice it, you end up borrowing the same sum of money over and above the savings you are going to put it. But by offering up a lower deposit, the bank is more likely to agree, providing it doesn't go beyond the LTV limits they set.