Could I get a mortgage on a house that needs full refurbishment?

sofarbehind

It's a vague question and survey dependent but I wondered if this would be possible in principle? At a LTV of 75-80%?


I have seen a few properties that appear to need a full rewire, new heating system, windows, new bathroom and kitchen. They have an old bathroom but a not really a kitchen, just a few 50s cupboards. Here is an example, http://www.rightmove.co.uk/


From what I can tell a house needs to be structurally sound with a kitchen and bathroom for a mortgage to be agreed. Would this house meet that requirement? I'm not sure!



Here is another example that looks like it might be a more realistic level of project to tackle: http://www.rightmove. I'm guessing this would be a safer bet.


I suppose I just don't know what makes a house suitable for cash buyers only.

This is all hypothetical at the moment, I know I have a lot more saving to do but I wondered if it would be possible? I have family who have done this before and could help a bit. It wouldn't matter if I couldn't move in for a year. I'm wondering if this is a way I could manage to buy a house instead of a flat? Or am I just daydreaming?

davidmcn

In general, yes, properties can be quite knackered and still be mortgageable. They need to be habitable (so working electric/water, and a bare minimum of kitchen and bathroom fixtures) but no need for central heating or a full fitted kitchen.

That example seems problematic due to the hole in the kitchen floor...and also looks like damp in various places, so you might end up with a retention.

HappyMJ

As long as you've got a plumbed in toilet and a working sink then it's mortgageable.

That property is odd though. An upstairs bathroom. A downstairs toilet without a hand basin. A real project. I'd turn bedroom 3 into a proper bathroom with a toilet. I'd put a wall in bedroom 2 so you can access the bathroom without having to walk through a bedroom. It would make it into a 2 bedroom house but it would be worth it.

And of course you've got to rip that kitchen out and replace everything. New carpet. Replastering. Remove the back boiler. Lots of work. There's a massive hole in the floor in the kitchen. If you're a builder it's probably a great buy. That's a property where a structural survey would be essential.

sofarbehind

davidmcn wrote: »

In general, yes, properties can be quite knackered and still be mortgageable. They need to be habitable (so working electric/water, and a bare minimum of kitchen and bathroom fixtures) but no need for central heating or a full fitted kitchen.

Thanks, I didn't know that about working electrics. I'm not sure I'd like to try switching those on!:rotfl:

sofarbehind

HappyMJ wrote: »

As long as you've got a plumbed in toilet and a working sink then it's mortgageable.


And of course you've got to rip that kitchen out and replace everything. New carpet. Replastering. Remove the back boiler. Lots of work. There's a massive hole in the floor in the kitchen. If you're a builder it's probably a great buy. That's a property where a structural survey would be essential.

Thanks happyMJ. I would've gone for making it a two bed as well. I think you're right and it it's a builder's project not a FTB's! Shame but I need to be realistic.

Waterlily24

We once bought an unmortgageable property, it had a working bathroom, kitchen, electrics, the outside and footings were sound and it had double glazing but there were two big holes in the downstairs ceilings and the previous owner had taken down a wall and used an old railway sleeper as a (can't remember what it's called lol) - to keep the ceiling up. There were also holes in some of floors upstairs. It was a beautiful home when it was finished though

lincroft1710

Both your examples appear to be Sold STC

sofarbehind

lincroft1710 wrote: »

Both your examples appear to be Sold STC

Yes they are. As per my original post it's just a hypothetical question as I try to work out what makes something unmortgageable. It seems holes in the floor are on that list!

AdrianC

sofarbehind wrote: »

...it's just a hypothetical question as I try to work out what makes something unmortgageable. It

That's simple. "Nobody at all is willing to lend money against it".

That's a very sweeping statement, and it only needs one lender to agree to lend at a very low LTV to a very safe buyer to disprove it. Rather more to the point is what YOUR preferred lender will lend against to YOU...

HouseBuyer77

It could be worth talking to the providers of self build mortgages. They have products where they're lending against currently non-existant homes on the assumption that they will eventually be a habitable home. So presumably some of them will also lend against a rennovation project where the building is a wreck that a normal residential mortgage provider wouldn't touch.