Buying a derelict property

The_Kids_Mum

Hi
I was wondering if someone could give me some advice? We are looking at potentially purchasing 3acres of land that currently has a 3bed bungalow on it. However, the bungalow is not fit for habitation. There has been planning that’s lapsed for a 4bed house to be built in its place, and there is current planning permission for a double garage to be built. We would need to sell out current home, which would give us £120k in equity, which we could put as our down payment for the land. But we would need to raise the rest (around £150k). Now we’ve been told by the estate agent that we wouldn’t get a mortgage on the property so what’s the next step?
There are static homes on the site (two of them) which is where the current owners live. These are included in the sale so we wouldn’t be looking at a self-build mortgage, as we may not be building the house straight away.
Any help or advice would be appreciated!!

EachPenny

Do the static homes have planning consent? If so, how long for?

Do you have any other means of raising the capital to buy the plot?

How would you fund the build project?

What is wrong with the bungalow? Is it feasible to renovate it in the medium term with a view to ultimately building it in to a larger property when you have more funds in the future?

ProDave

It is perfectly normal when getting PP to build a new house to also get temporary PP to live on site in a static caravan. So all you need do is design your house and submit your plans and living in the 'van will be perfectly legal.

And then a self build mortgage is your route to financing the build.

for all things self build take a look at buildhub.org.uk

Alternatively find out how long they have actually been living in the static caravans. It might be long enough to qualify for a certificate of lawful development.

Slinky

EachPenny wrote: »

What is wrong with the bungalow? Is it feasible to renovate it in the medium term with a view to ultimately building it in to a larger property when you have more funds in the future?

Will that not have bad implications from the VAT perspective though? A new build development will allow VAT reclamation that a renovation project won't.

Ozzuk

Is it 270k for the plot? If so how would you fund the build, assuming a 4 bed could easily be another 150k+250k+?

If you are planning to secure the plot only and live in the caravan then I can't see any self build lenders being happy with that. In fact I can't see any way you'll get finance for it.

Will you pass the affordibility checks against a mortagage of 300k+

Brock_and_Roll

Op,


Has anything changed since your post in Feb this year:


"I live in a rented cottage. I get housing benefit and child and working tax credits. I currently have around £2k in savings, but nothing else."


If that is the case I cannot see how you could pass the affordability checks referred to by Ozzuk.