buying at auction-urgent finance

Mutton_Geoff

Lenders will not port a mortgage to a property you already own for some reason.

Time is not on your side but I would have got a friendly builder round to give you an estimate of £70k to extend your own house and at the same time apply to remortgage with a product with no/low redemption fees for the purpose of extending but then divert the money into your other project.

The lender has money secured on your house at favourable LTV so they will see little risk. It's only recently they have become more fussy for reason for loan so you can tell them what they want to hear.

Once your deal is all done, sell current house and mortgage new one for same purpose, this time with most competitive loan to suit your purpose.

eddddy

BrassicWoman wrote: »

what is your income stream to service the debt until you sell one of the houses? Capital is all very well, but you need income.

With bridging loans, there is often the option to have the interest 'rolled up'.

i.e. It is paid in a lump sum when the loan is redeemed.

Obviously, the lender will look carefully at the property and your plans, to make sure there is sufficient security to cover the loan plus interest, should they need to repossess.

Richey_

Are you sure about the £300,000 valuation.
I agree it’s a lovely property with huge scope, I would be concerned by its age and whether there is asbestos, vintage wiring, it’s insulation, the roof etc.

Reason why I queried the price is I put Sturton by Stow into right move for average house prices and on the first page alone earlier this year a 2 bed detached bungalow sold for £132,000 -
http://www.rightmove.co.uk/house-prices/detailMatching.html/svr/1717;jsessionid=94A2DA5CADF641982B75ABB3D06A922A?prop=59827516&sale=5379976&country=england

and a 3 bedroom detached bungalow sold for £136,000, again within the last 12 months.
http://www.rightmove.co.uk/house-prices/detailMatching.html/svr/1717;jsessionid=94A2DA5CADF641982B75ABB3D06A922A?prop=58376309&sale=89584191&country=england

I’d be wary as house prices are dropping too overall.

It’s a nice building with a lot of potential. The two houses above both had large gardens, this one has no rear garden it looks like and that would hamper your proposed house price.

Just slow down, think it through, take advice and see an independent mortgage adviser / broker would be my advice, you have time but must do it all this week.

RedFraggle

300k buys a lot there. Gainsborough is very run down with very low house prices, Lincoln is lovely but cheap for a vibrant city and a lot more expensive than Gainsborough. Sturton by Stow sits slap bang between the two. Add that to the unusual nature of the property and it's a hard one to judge.

blenny123

Richey, thanks for your input. Yes it is on a strange plot and limited garden but the floor space is 270 metres squared which is huge compared with other properties around. Maybe 300k is a little optimistic and it needs full rewire,central heating..everything really. I have been looking for a 4 bed property in mid Lincolnshire and anything large is 300k+
My thoughts are:
£140 purchase price
£60-£80k for renovation (me doing the work where poss)
£280 final value?? so 60-80k profit for 1.5 years work

Mutton G-e.. My intention was to say the mortgage was for other stuff but my wife would not agree as it is classed as mortgage fraud and could land you in trouble

RedFraggle

If you are not local just beware that mid Lincolnshire prices vary enormously. DH is a Gainsborough boy, his oldest friend lives in that village and we lived in Lincoln until 2007 so we do know that area very well regardless of what you think of my earlier comments.

Richey_

Blenny I live a long way from you so have no idea about the local house market or house prices where you are. That’s why I advised seeking proper advice local to you first before I bought the property. It may be worth also speaking to an estate agent about the lack of back garden and how that would affect the overall price. Some people don’t mind having a large front garden and no rear, people with children may disagree. It’s personal taste but will affect any potential resale price. I like the property but I would have personal reservations. Just know your local market, most of us on here will not be local to you

RedFraggle

http://www.rightmove.co.uk/property-for-sale/property-61178593.html
http://www.rightmove.co.uk/property-for-sale/property-68291738.html http://www.rightmove.co.uk/property-for-sale/property-42586776.html

These might help.

blenny123

Thanks RedFraggle, those are some interesting properties with nice large gardens. Although floor space on a couple of them are a lot smaller than plans I have for possible purchase (around 300-340m).

Cakeguts

Well it is a large brick hut. What you will finish up with is a brick hut with no character pretending to be a house. No one wants a large 4 bed house with no back garden. If someone with children buys this they will have a front garden that has to be divided into a parking area and somewhere for the children to play. The garden has no privacy so a barbecue party will be seen by everyone driving down the road.

Converted chapels and churches work because they mostly have some form of character. This doesn't have anything it just looks like fairly modern brick hut.