Need a huge loan to buy a property...is it possible?

freeisgood

Hello all,

Long and short of it....we are currently in rented.

Spotted a dream house that needs a face lift, we love it.

It is currently for sale for 800k. We don't have all this money only 200k cash now...we are currently building 3 properties, they will all be finished and highly likely sold in 1 yr.

These will make us 1.1 million.

What on earth can we do...do we just wave our dream house goodbye? Any option to borrow all this money for 18 months or will we be laughed at?

Thanks for listening.

(We are earning approx 45k between us so mortgage not even an option.)

jonesMUFCforever

Not a hope in hell.

freeisgood

Dang

What about bridging loans? Not a single bit of hope?

Thanks

[Deleted User]

Less hope than a mortgage.

freeisgood

I am wondering if we can sell our building projects...foundations already laid...thats all? Hmmmm.


Thanks for the advice

andyfromotley

you could sell your existing projects. However you would need to find a buyer first and are probably limited to small developers.

If you can find a developer willing to buy all three then obviously they will only really pay the land value. will that be enough?

However i really dont buy this 'dream house' line. Theres always another dream house just around the corner ime.

saverbuyer

I think you have two hopes.


Bob Hope
and
No Hope.

tonyh66

I want to know how you can afford to build 3 houses worth £1.1M on a combined salary of £45K, you must have cash to do it, because no one is going to give you a mortgage/loan big enough to do it on £45K.
Im only asking because Im struggling to get a self build mortgage for £200k on a combined £60K.

jamesd

freeisgood wrote: »

What on earth can we do...do we just wave our dream house goodbye? Any option to borrow all this money for 18 months or will we be laughed at?

(We are earning approx 45k between us so mortgage not even an option.)

Whether the owner of the dream house will be willing to do a deal is the interesting question. It depends on their needs. If they don't need the money they might be willing to effectively rent the house to you for a year having agreed a purchase price with you paying a deposit. If they need the lot then you'd have to get them to do a deal where they would accept completion quite a long way into the future and that would be tough, effectively requiring you to sweeten the deal for them somehow. If they are looking to move, would they be looking to move into something like what you were building? If yes, then with things like an agreement to customise the build to meet their needs you might be able to get a build then swap deal done. Or maybe they are planning to move into a place that needs work and you could do the work as part of the purchase price of the dream place.

Have a discussion with the dream house seller, not their estate agent. If they would actually want what you are building you're potentially going to get the deal done because you won't need a mortgage.

If they are willing but you still need money, you might give the P2P firms Ablrate, MoneyThing and Saving Stream a call. All three might consider it but all three will require the property as security and for a building project that means the value in the state it's in at the time the money is provided. They would be willing to advance more money as the deal proceeded if they were interested at all. Assuming the projects are early stage the land value would be the likely maximum and lending might be at 60% LTV based on the land value alone.

Cash flow would be a big deal. Three houses one at a time would be a lot easier to finance than three at once. Then the sale of the first one can help to fund the second and third.

Good luck with the vendor. If you get them on side you have a chance, else you probably don't, unless the land value is high enough to fund the purchase cost at that circa 60% LTV.

freeisgood

tonyh66 wrote: »

I want to know how you can afford to build 3 houses worth £1.1M on a combined salary of £45K, you must have cash to do it, because no one is going to give you a mortgage/loan big enough to do it on £45K.
Im only asking because Im struggling to get a self build mortgage for £200k on a combined £60K.

Yes, we have the cash...no mortgage of any sort involved...All plots are now owned..money has just all been allocated for building budgets...and spent on building plots. Foundations laid. etc.

freeisgood

PS the dream house was run as an old hostel that is now sitting empty...owners lived/live elsewhere.

Thanks JamesD for the guidance