Loan needed for management company refurb- HELP!

konn1ch1ha

Hello all,

So myself and six other shareholders all own the management company of a building in Brighton. The building consists of six flats and a basement flat (my share in the management company, I believe, is 4%), the others have some at 12, 15% etc etc.

There are a lot of works to be done throughout the building, such as exterior rendering, possible removal of fire escape and roofing amongst many other issues to be addressed, as well as the erecting of scaffolding to the front and rear of the building. The total is around the price of £43k (including property management fees VAT etc). I would pay 4% of this, being about £1700.

However, I'm not in a position to pay that share straight up. Would the bank be willing to lend me the money (on top of my already existing overdraft) on the strength I do not have a mortgage and it's an investment? What arrangements could be made? What other banks could I approach for a loan? Could I?

Unless I take out a loan with Lloyds and pay it back over 5 years, it's not a very appealing decision.

Any advice or information on the situation would be much appreciated.

Thanks

foxy-stoat

konn1ch1ha wrote: »

I would pay 4% of this, being about £1700.

However, I'm not in a position to pay that share straight up. Would the bank be willing to lend me the money (on top of my already existing overdraft) on the strength I do not have a mortgage and it's an investment? What arrangements could be made? What other banks could I approach for a loan? Could I?

Unless I take out a loan with Lloyds and pay it back over 5 years, it's not a very appealing decision.

For £1700 I would just use a credit card, or get one and pay it back as soon as possible as taking a loan out for such a small amount would be a high interest rate.

They would only lend you money on the strength of your credit history and affordability.

Gaz83

konn1ch1ha wrote: »

Would the bank be willing to lend me the money (on top of my already existing overdraft) on the strength I do not have a mortgage and it's an investment? What arrangements could be made?

Have you asked them?

Did you follow any of the advice posted in your previous thread on the subject?

https://forums.moneysavingexpert.com/discussion/5477858

konn1ch1ha

Gaz83 wrote: »

Have you asked them?

Did you follow any of the advice posted in your previous thread on the subject?

https://forums.moneysavingexpert.com/discussion/5477858

I did. Admittedly, this is a repost to try and get more attention/answers.

Lloyds' quotation just isn't very satisfying!

konn1ch1ha

foxy-stoat wrote: »

For £1700 I would just use a credit card, or get one and pay it back as soon as possible as taking a loan out for such a small amount would be a high interest rate.

They would only lend you money on the strength of your credit history and affordability.

How does a credit card actually work? Do I pay it off monthly, cherry pick and choose when to pay it off and how much per month?

foxy-stoat

konn1ch1ha wrote: »

How does a credit card actually work? Do I pay it off monthly, cherry pick and choose when to pay it off and how much per month?

If you have never used a credit card, you pay for something, get a statement at the end of the month, or when the company's month end is, they ask you to pay the minimum payment, 5% by a certain date. You can pay more than the minmum or choose to settle the whole balance. Next month whatever you owe gets interest added and you have to make the minmum payment again.

If I was me I would set myself 12 months to pay the £1700 back, so for the first month pay back £141.67. Then the second month payback £141.67 + any interest that was added, otherwise you will not pay much off the capital and it will take years to pay back.

andyfromotley

You have known about this work (and the likely bill) for two years and havent made any provision for it. Putting £70 per month away for the time you have owned the flat would have prevented this being a problem. You should consider setting up an emergency fund just for flat repairs to avoid this in the future.

I wouldnt use a credit card as your abaility tpo budget seems really suspect and this could spell disaster with a CC. Just take out a loan on the lowest ineterest rate that you can find.