Seeking Advice on remortgaging - would it be possible?

bupe

Ok, I am in a state of desperation and not knowing what to do, hopefully you or someone out there can help!

My partner owns a house in Dover, the tenant who was there destroyed the place and it now needs a lot of work doing to it. To add to the situation the tenant was evicted owing approx £12,000.00 in rent, with the extent of work required my partner would need £15,000.00 to bring it to lettable standard. My partner is sick of the house and wants to move on from it. Essentially the house needs to sell, it has been on the market for about 6 months now as both open tender and the normal route for sales. It is not getting a look in as the amount of work is too extensive, but the sale of the property needs to clear the mortgage so minimum £95,000.00. As selling it is not happening and he is unlikely to get the return to repay the mortgage, we need to get the property back up to a standard where it can be re-let and then potentially sold on later down the line.
The house has been identified as needing: new damp course, new bathroom (floor, walls, suite), kitchen (floor, walls, units, ceiling), flooring (boards need replacing) and decorating throughout, windows (all in different states of repair and some only single glaze), new external stair case to front of property to access basement level entrance, boiler repairs (probably new boiler as this is an ancient back boiler), and this is probably not everything. We had two quotes about 9 months ago in the region of £15,000.00 for all work. This is simply out of range for us to afford.

We have looked at loans to cover the costs and to then rent out to recoup the money but both of us have cars on finance, and credit cards owing approx £12,000 - mainly due to money lost on keeping the house current.
As it is we have to rent as we cannot afford to buy a house and the one we have wont sell.

amnblog

I am not sure what you are asking here?


Your post gives the impression that the outstanding mortgage is at or near the current value of the property - if so re-mortgaging is not an option.


I hope your partner is suing the previous tenant for lost rent and damages?

Thrugelmir

Much of the work listed is standard maintenance. Damp, boiler, windows for example.

What's the market value of the property in it's current state?

HappyMJ

The rent would need to cover around 125% of the interest on the mortgage as well.

I'd be looking for an unsecured personal loan over 5 years, do the place up and let it then look to get another mortgage later to reduce your monthly payments....or just sell it....for any price. i.e at auction.

Yellabowley

Are you renting somewhere else or do you own another property?

If you're renting is it not possible to move back into the one your partner owns and live there while you do the ongoing repairs. With the money you save on renting where you're currently living you should break even. I'm guessing it won't be ideal but for the purposes of getting it to a sellable state it might work?

If you do own another property, would it be possible to rent that one out while you do the above?

ACG

Thats a lot of money - if you are paying builders to do it all it will cost.

I bought my house and it needed gutting (everything, central heating, rewiring, new bathroom, kitchen, doors, decorating, carpets) and all in I have not spent £15k.

Look at this another way,
What NEEDS doing - do all of the windows need doing really? Can you get them done cheap now in January?
Does everything you say need doing to sell the house or does it just need to be done at some point?
Do you have to get a professional in for it all? On a £95k house, your not dealing with the queen, so nobody is going to expect it all to be pristine and perfect. Im sure you or someone you know is capable or painting and putting up some wallpaper for instance.

bupe

thank you all! good tips and advice there! We live about 2 hours away so living there isnt an option but has definately given me more ideas