help buying a house project

lewwidd

ACG wrote: »

You have found a company who will lend you 200% of the property value? Paid upfront or in stages?

Forget guide prices, if that is what it is worth great. But if you think once renovation work is complete it will be worth £200k then realistically it will probably sell for closer to £100k to a cash buyer.

Yes, it's a self build/renovation mortgage, they pay out for the property, then release funds upon completion of watertight, plumbing etc.. so you get the work done then they pay you to pay the contractors to keep the work going on track and not paying upfront and then hassling people to get the work completed.

It previously sold 5 years ago for £150k before the ripped it all out and then put a second floor on the cottage. so i'm guessing once completed it could be worth a lot more. I don't care what it is worth to a cash buyer though as this would be a forever home. we did look at properties we could re-do a kitchen or bathroom on and sell after 5 years and get ourselves slowly up the property market but came across this and said if we got it we would never feel the need to move. its huge and has the potential.

Unless we win the lotto tomorrow, i think we have to come to terms with it's going to be sold at auction on friday and unfortunately we weren't aware of being in a position to buy until recently hence our low savings. (we are in military accommodation at present and have now just recently decided to buy)

thanks for all these comments, they are much appreciated

Tiners

If you intend to regularly do your shopping at a motorway services then you'll need an additional mortgage just to pay for that!:rotfl:

AnotherJoe

Don't take this personally but I don't think you are in a good financial position to start this project.

You will need much more to buffer gaps in the project between spend and loan stages, or any delays in staged payments for whatever reason, nor do you have anything for overspend (effectively you have zero overspend budget) nor does it give you credibility with a lender that you have so little of your own money to put into this project, you want them to take all the risk.

I would say use your time in (presumably low rent) military accommodation to save for at least another year, then look again. I doubt this house will go for what you think (£46k), if it's such a slam dunk for making a profit why would it. Let us know what but goes for. I'd guess double. if not then it's a money pit that you can't afford to buy even if you could afford it if you see what I mean.

G_M

lewwidd wrote: »

The question i am asking is HOW i can get a hold of a lump sum of roughly £30-46k which can be paid back within 8-10 weeks when the application for a renovation mortgage has gone through successfully

I have done exactly that in the past (£55K) via 0% credit cards.

(was a year or 2 back though......)