£50,000 for a non standard build.

Littlelight

Hi
My husband & I have rented the home we live in for 5 yrs. We own a property in another part of the country and have paid off the mortgage. We want to buy the home we rent and the owner wants to sell it to us for £250,000. The problem is that it's a non standard build so we can't get a mortgage. We can raise £200,000 from the sale of the property we own, we don't have any debt and we've got a good credit history but we can't find a way to raise the extra £50,000. We have tried to get a mortgage from companies that specialise in non standard mortgages but the property type isn't listed on their lists. There are about 40 of the homes on our site, there are queues of people wanting to buy them and they sell for around £300,000. We have looked at unsecured loans and calculate that a loan of £50,000 over a 5 year period would cost us £140,000 which isn't acceptable. Does anybody know how we can borrow the £50,000 at a reasonable rate? We're both mid 50's.

HappyMJ

You could get personal loans for less cost than that.

I got a £15,000 unsecured PL for £295 a month over 5 years which would cost £17,700. If you could get £50,000 over several loans then that would cost £984 a month over 5 years that would cost £59,000....certainly not £140,000.

I borrowed at 6.9% through the Halifax and later less than 6 months later through Sainsburys at 3.9% to refinance the loan. Both loans were outstanding for a month therefore I did owe some £30,000 for a period of time until I used the funds to repay the loan.

Maximum_Saving

I suggest get three or four different loans at the lowest percentages you can. Make sure they don't have big early repayment fees. It sounds like you won't be needing the loans for long once the property gets sorted. I live oppostye a bungalow that I builder bought. He did make the bungalow look beautiful and it sold for much profit for him. Good luck.

jonesMUFCforever

Banks will not lend on personal loans for purchase of land or property.

OP If you can't get a mortgage now what happens should you want to sell?

What kind of non standard build makes it un-mortgable?
Have you spoken to a mortgage broker?

vlad

You mention a "site", is the home a park home? if so look up park home finance, without checking I think there are 2 one being royscot larch

https://www.google.co.uk/search?client=safari&rls=en&q=park+home+finance&ie=UTF-8&oe=UTF-8&gfe_rd=cr&ei=KYySVqifE47j8wfynJP4Bg

Littlelight

Thank you for your replies. Several small loans could have been an option but as has been mentioned you can't get a personal loan to buy property. The properties are a bit 'like' caravans that are built on stilts. We looked into buying the land beneath the property rather than the building itself but it's owned by a seperate private company and it's not for sale. I think we've looked at park home mortgages before and didn't get anywhere with it but I'm going to try again with the suggested link. Thanks.

Littlelight

@jonesMUFC Most of the properties are owned by the original owners or been in their families since they were built in the 50's. If they do go up for sale, they sell quickly for cash. I have of course considered the obvious that if I haven't got that kind of cash, perhaps I shouldn't be living here but I like it here, I'm happy here and I'd like to stay.

jonesMUFCforever

Littlelight wrote: »

@jonesMUFC Most of the properties are owned by the original owners or been in their families since they were built in the 50's. If they do go up for sale, they sell quickly for cash. I have of course considered the obvious that if I haven't got that kind of cash, perhaps I shouldn't be living here but I like it here, I'm happy here and I'd like to stay.

Are there restrictions on the amount of time you are allowed to live there?
Some parks round here have had chalets/homes/caravans (whatever you want to call them) sold and people live there 365 whereby they are only ''allowed'' to live there for say 10 or 11 months at most - wonder if this is the reason you are struggling to get mortgage on it?

Littlelight

There are no restrictions on occupancy the single issue is that the properties have polycarbonate walls and don't fall into any 'mortgageable' category. One of the properties has been developed and won awards as an environmentally friendly showcase so we tried 'green' lenders but came a cropper with that because they wouldn't lend on polycarbonate and wouldn't sanction the polycarbonate being sent to landfill if we replaced it with something suitably green.