New Homeowner help.

Elkina

About my situation, i have always known around the age of 30 i would inherit my fathers house for a minimal sum, so had my farther so he let it go and never properly maintained it saved all his cash for his new home.

So here i am at 29 bought my fathers house for £5000 no mortgage i own it outright, its only a 3 bed terraced house worth around £85k but i need to do so much to it, Boiler and full system, electrics, carpets, plaster all walls ceiling etc.

I'm self employed so work can be great or be terible, my average over the last few years has been 22k.

My father also put a clause for selling me the house that i had to have his singed permission to sell it and if he was homeless i would let him live here.

What are my options Can i get a Remortgage if i own the house?
Is it worth it being self employed?
Will the clause in the legal document prevent me getting a remortgage?

I'm sorry i know so little i have only ever rented till this point. Any advice welcome.

fed_up_and_stressed

You earn £22k and have no mortgage have you can tried to save up for the works to be completed ?

Elkina

That was my first plan to do it over the years, its my friend that has put this in my head, he is a electrician and from his experience its cheaper to get it all ripped out and done in one sitting buy a single builder.

Also with Remortgage on a property i own do i have to do all the checks, i only want to borrow £10k to get it done.

Elkina

I just tried to price one up with stantander but minimum was £25k, i don't want that much. but £25k was only £106 p/m.

Thrugelmir

Elkina wrote: »

My father also put a clause for selling me the house that i had to have his singed permission to sell it and if he was homeless i would let him live here.

A complication if you wish to remortgage the property.

Elkina

Thrugelmir wrote: »

A complication if you wish to remortgage the property.

Can you tell me more about this?

Annisele

Essentially a lender would want to be sure they could repossess the property if you didn't pay the mortgage.

The problem with the "signed permission / live there when homeless" thing is that your father might be able to prevent the lender from repossessing. If that is the case, the lender wouldn't be prepared to lend in the first place.

And yes, with a remortgage on a property you already own checks still need to happen. The lender wants to be sure the property is good security for the loan - so some checks are needed for the lender's benefit rather than yours. But if you only want £10k, the costs associated with a mortgage might not be worth it (even if you can get one).

moneyman12345

Hi Elkina


I presume the 25k mortgage you found at £105 per month is for 25 years?


Why not get a 10k 5 year loan? This would work out at roughly £180 for the term. (and you could overpay if you have a good year)

Elkina

moneyman12345 wrote: »

Hi Elkina

Why not get a 10k 5 year loan? This would work out at roughly £180 for the term. (and you could overpay if you have a good year)

Yes this seems like a good idea, having spoken to a few more friends and family, im going to hold on for maybe 12 months and see what i can save in that period.