How to finance a property renovation project

fforsythuk

Hello,

I'm thinking about investing some cash that I have into property renovation) on a small scale only). I'm talking about having enough cash to put down a 25% deposit and enough left over to fund the renovation.

Can someone advise the best way to finance the rest of the property purchase? Is there a special type of mortgage for these kind of projects where the process from start to finish would likely be less than 6 months??

Thanks

foxy-stoat

Depends on what your doing to do with it after you finish, let it out or sell it.


If you sell you may struggle to find a buyer who needs a mortgage if you plan on selling in less than 6 months, but your not likely get a business loan for property so residential mortgage would be the normal.


If you let it out then a BTL mortgage would be best obvs.


You need to crunch the numbers from start to finish, including stamp duty, capital gains tax and general household monthly bills, buying and selling fees, legals and ERC for your mortgage.


Good lucks