Re-Mortgage for self build

emmo709

Hi,

I'm hoping someone here can help me to clarify a best path forward.

I'm hoping to build a house (land identified, but no planning yet) and my parents are willing to assist me in some of the initial costs with this, with a view to paying them back after build completion by getting a mortgage on the completed property.

They have a house worth around £300k and no mortgage. I'd need around £40k and they are willing to re-mortgage or release equity to assist (I know........it's a great help and I'm very grateful).

The question is what is the best way to get this money out of the bricks and mortar?

Any advice most welcomed and if you need more from me please let me know.

Thanks for reading,

Dave

Thrugelmir

Why not obtain a self build mortgage directly yourself?

emmo709

To get that you need planning. This money will allow me to secure site, at some minimal risk and then get planning sorted.

I'm very aware of options open to me in terms of SB financing, just not on the question area posed.

TrickyDicky101

Do your parents work? How old are they? For a traditional mortgage (for them to release equity) they will likely need demonstrable income (eg salary, but there may be some lenders who will take pensions into account).

amnblog

We don't know your personal situation for underwriting Dave, but provided the property is complete and has a suitable guarantee and value there will be options to re-mortgage.

You will need to have owned the property for a least 6 months, ideally 12 - depending on the lender.

emmo709

Thanks for the posts so far.

Okay here's a little more information:

My parents are 64 (father - working and well above average salary) and 66 (mother - retired)

The house (bungalow) has a value of around £300k and no mortgage, it was a self build 12 years ago and finished to a high spec.

I need to release £40k for a maximum of twelve months as I will mortgage the completed house and pay both them and the loans on the build off.

I have extensive architectural and construction experience at a project management and technical level so see this as low risk.

If you need anything else please tell me.

Dave