How to raise 45k please?

VoixDeVille_2

Hi,


I was wondering if I could possibly ask some advice please...


I am a 32 year old teacher with a permanent job based in North West UK, and I have been saving up to buy my first house/flat for a few years now.


I will have 24k in savings by the summer. I have seen a small flat I would be very interested in purchasing which could be negotiated down to around 69k.


The problem is, there is a 100 year lease on the flat which cannot be renewed until the flat has been bought, and no lenders will provide a mortgage on the flat until the lease is renewed - leaving me in a catch 22 situation.


I was wondering if anyone could give me some advice on borrowing around 45k - not via a mortgage? I think my family may be able to lend me some, but not all of this money.


Do you think I could raise it via peer-2-peer lending?


Any advice would be greatly appreciated. Thanks

Pixie5740

Have you spoken to a mortgage broker? Usually it's only once leases are less than 80 or 70 years that it's an issue to get a mortgage. A 100 year lease should be fine for a mortgage.

Pay_me

When I purchased a flat in 2014 I went through a mortgage broker. The magic number was 80 years left on the lease (nationwide). My broker told me that some lenders will lend on below 80 years.

I found the bank to be more concerned about the flat size than the lease. If I remember correctly the minimum size was 32m2 (going from memory so check the size requirement)

[Deleted User]

Pixie5740 wrote: »

. A 100 year mortgage should be fine for a mortgage.

Yeah..okay :eek:

VoixDeVille_2

Ah ok, all I know is the lease needs renewing, so I'd assume it would probably have less than 70 years left? My friend already has a flat in the block, and she has told me about the situation. Luckily, she was able to buy her flat outright.


If this still sounds wrong, I will find out for certain tomorrow and let you know. All she said was, she's virtually certain I wont get a mortgage on it...

Thanks

Pixie5740

Quite possibly but it is possible to have the lease renewed as part of the buying process although it is something which has to be done by the vendor.

If the vendor can't, for whatever reason, renew the lease then there won't be many (any) other lending options available to you. You're unlikely to get the 2/3 personal loans required to get £75k of unsecured lending.

VoixDeVille_2

Thanks for your reply. Do you think peer-2-peer lending would be an option please?


Thanks

DomRavioli

VoixDeVille wrote: »

Thanks for your reply. Do you think peer-2-peer lending would be an option please?


Thanks

No. Unless you have an income of almost 100k you won't get it as a loan. (loan to income of what you're asking, and a teacher's salary up here is maybe £25k?)

Go to a broker, find out the actual situation, and get a mortgage.

Pixie5740

It's difficult to get the required amount of borrowing for a short lease, that's why short leases are usually quite cheap as there's only a small pool of buyers who have the funds available. If you can raise the money somehow then you need to start looking at ways of paying for the lease extension because the lower the lease goes the more expensive it gets to renew at an exponential rate.

Find out what's what and then go and see a broker.

VoixDeVille_2

Ok, thanks for the replies

AnotherJoe

VoixDeVille wrote: »

Ah ok, all I know is the lease needs renewing, so I'd assume it would probably have less than 70 years left? My friend already has a flat in the block, and she has told me about the situation. Luckily, she was able to buy her flat outright.


If this still sounds wrong, I will find out for certain tomorrow and let you know. All she said was, she's virtually certain I wont get a mortgage on it...

Thanks

Your friend buying her flat "outright" is wrong also, maybe she bought the leasehold and a share of the freehold which is different to buying it outright? Whatever, there's a lot of conflicting info in your post, presumably from your friend? It's a 100 year lease on which no one will lend (yes they will) . It's less than 70. No lenders will lend. Virtually no lenders will lend (which means some will). Etc.

Start with the estate agency who are selling, then a solicitor to confirm. Steer clear of your friend regards advice on leases and mortgages !