build new house in garden

Need_lots_of_advice

Thanks for the reply. locally there is a high demand for new dwellings and when I spoke to planners he quoted the udp figures for the village and how local council prefer infill developments.

midnight_child

Sorry my last post crossed.

Is it possible to get a mortgage for a house that is not built and does not yet even got planning permission??

Dont want to sound too negative, but im not sure the numbers add up.

MC

Mallotum_X

The other option is look to parcel off the land and sell it with planning to a builder. Avoiding issues of financing, but giving you less control overall.

If the sale of the land were to be going straight to your mortgage company then they would no doubt be happy.

Your overall profit may well be less, but its more predictable and avoids financing risks.

Need_lots_of_advice

midnight_child wrote: »

Sorry my last post crossed.
t possible to get a mortgage for a house that is not built and does not yet even got planning permission??

Dont want to sound too negative, but im not sure the numbers add up.

MC

don't be sorry thats why I posted this incase ive not worked out plan properly. A smaller house on a smaller plot 2 doors down has just been sold for 270 and was valued at 299 but the neighbours were desperate to leave. the new house were planning to build will be about the same size.

Also when we bought old house it was completely replasterd rewire and new heating.

Zoopla have estimate of over 300 for old house so am being conservative with valuation

Need_lots_of_advice

Mallotum_X wrote: »

The other option is look to parcel off the land and sell it with planning to a builder. Avoiding issues of financing, but giving you less control overall.

If the sale of the land were to be going straight to your mortgage company then they would no doubt be happy.

Your overall profit may well be less, but its more predictable and avoids financing risks.

in an ideal world if we could get a bridging loan to develop our selves we could potentially have a house worth in excess of 250 and have cheaper running costs due to better insulation ect. There's too many reasons to not develop .

edinburgher

I am confused, very confused.

You say you could sell the land to your brother, he could get a mortgage to build the new house and then you'd build a second house, sell it and pay off a) his mortgage and b) your mortgage.

He would own both the land and the house. What happens if he changes his mind?

Why do you expect your brother to basically tie up £80k of his own money just to make you a tidy profit? (Plus he'd have a mortgage in his name). I'd never expect my family to do that, seems very convoluted.

Need_lots_of_advice

edinburgher wrote: »

I am confused, very confused.

You say you could sell the land to your brother, he could get a mortgage to build the new house and then you'd build a second house, sell it and pay off a) his mortgage and b) your mortgage.

He would own both the land and the house. What happens if he changes his mind?

Why do you expect your brother to basically tie up £80k of his own money just to make you a tidy profit? (Plus he'd have a mortgage in his name). I'd never expect my family to do that, seems very convoluted.

if we could get a loan to build by ourselves we would. The reason for brother buying was because it was his idea to do it . I trust my brother and by him buying land if for some reason the build goes wrong the security will be the new house and plot

Beckyy

You can't do any of this without consulting your mortgage company. No solicitor would be able to sell the land to your brother without their consent because your lender will be holding your deeds.

edinburgher

if for some reason the build goes wrong the security will be the new house and plot

The 'build' is the new house and plot (both of which your brother will own, not you).

Just making sure you've got that clear in your head (not being cheeky)! :beer: