When does a barn conversion project become mortgageable?

Devon_Sailor

Good evening all,

I have done a bit of looking around online and cant seem to get any particularly clear answers so thought I'd have a punt on here.

Situation:
Own a barn with planning permission (valued £220k). Currently in the process of obtaining a bridging business loan for £200k to commence works. Estimated total build cost c.£250k (bells and whistles, all-singing, dancing, etc). Value on completion gusting £550-580k, so looking to re-mortgage at earliest opportunity and transfer bridging loan to a normal mortgage and take out the remaining build costs for finishing fittings, etc.

As far as I understand it, I have been advised that:

1. As I already own the property in question that any mortgage application could be considered a re-mortgage rather than a first application. Is this correct?

2. To become mortgageable, a building needs to be essentially habitable (ie, hot & cold running water, electric, a kitchen, working toilet, building watertight). Are there any other blindingly obvious criteria that I have omitted?

I suppose finally, I was wondering if anyone had done a conversion/self build, and had any positive recommends for mainstream lenders who might be good to approach.

Thanks for reading, and very appreciative of any responses.

Regards
D_S

mrmajika

I'm sure someone else who is far more knowledgeable will be along, however, in my limited experience in this area, any lender will require the habitation certificate before they'll lend. This is issued through the local authority, although I believe other accredited people can also issue them. To obtain one the building needs to comply with building regulations of which there are 12-15 odd different sections.

http://www.self-build.co.uk/guide-building-regulations

That website may help you.