Advice needed: partially built house, new purchase

clarkeg

Hi guys,


I am hoping you can help me out here. We have recently been successful in being the highest bidder for a house that has been built to roof level.


The house has been built to roof level but the roof was never tilled and the builder ran into financial difficultly 4 years ago and the house has lay in this condition. The house obviously has full planning permission and foundations have been inspected and passed by building control. The roof structure needs replaced due to being left with no tiles for 4 years, there are no doors, windows, etc. Basically it has foundations, blockwork up to roof level and roof trusses (which will be replaced).


My question is regarding mortgaging the build, once all solicitor side of things goes through (hopefully successfully) and we actually own the house and site (we will be paying for this with cash savings at a cost of £73,000) - 0.5 acre site and house along with full architect plans.


We have had a friend builder come out and give a very rough cost of approximately £90,000 to completely finish the house, estimated finished sale value of approximately £250,000 (it is a 3,000 square foot house with detached double garage).


How does a lender look at this type of house? Is it still classified as a self build? A few people have told us you will have to self fund the house build to a liveable standard before any lender will mortgage on the house, is this true? If so what is classified as liveable? 1st and 2nd fix all complete, bathroom, kitchen sink and toilet fitted?


I plan on making appointments with banks / building societies but I wanted to know as much info as possible before I go to the appointments.


Thanks
Clarke.

davidmcn

It's certainly not going to qualify for a standard residential mortgage unless it's habitable i.e. someone can turn up with their removal van and live there. Might qualify for self-build mortgages but not something I've encountered before, generally this sort of property becomes a cash purchase by a developer.