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Extra funds for refurbishment
Options
Suzidil
Posts: 4 Newbie
Good morning,
I was advised to repost this here rather than under Loans since I was led to believe that mortgage products would not help in the very beginning.
I would greatly appreciate your advice with regards to home refurbishment financing: whether and how we can access those offers as a home owner (not a developer). The extra funds we require are about £500K to bring the value of a £2m house to over £3m. We hope to pay it over back over 36months or more.
If I may clarify, the house we would like to buy as our family home already has planning permission to extend and requires interior renovation/refurbishment. We already have Agreements in Principle to buy the house but need extra funds to do the works before moving in.
The current value of the house is around £2m. The only builder we have consulted with has provided a quote of about £380K+VAT for the works which we would like to allow £500K for after taking it out to tender.
Properties of a similar scale and scope after the works are on offer in the area for around £3.25m or above. We have no intention of selling the house and hope to make it our home for many years to come.
I understand that our mortgage lender, Barclays, will not be of much help since they effectively lend back the equity already paid on the mortgage which will not be enough to cover the cost of the works in the beginning.
After some preliminary internet research, I came across private finance options such as Property Development Finance, Refurbishment Finance and even Bridging Loans that seem to provide funds for such works but notice that they are either too short term or mostly directed at property developers.
Before I go further, may I please ask the members of this forum as to whether there are such loans available to us and where best to look for them.
Many thanks for your time in advance.
I was advised to repost this here rather than under Loans since I was led to believe that mortgage products would not help in the very beginning.
I would greatly appreciate your advice with regards to home refurbishment financing: whether and how we can access those offers as a home owner (not a developer). The extra funds we require are about £500K to bring the value of a £2m house to over £3m. We hope to pay it over back over 36months or more.
If I may clarify, the house we would like to buy as our family home already has planning permission to extend and requires interior renovation/refurbishment. We already have Agreements in Principle to buy the house but need extra funds to do the works before moving in.
The current value of the house is around £2m. The only builder we have consulted with has provided a quote of about £380K+VAT for the works which we would like to allow £500K for after taking it out to tender.
Properties of a similar scale and scope after the works are on offer in the area for around £3.25m or above. We have no intention of selling the house and hope to make it our home for many years to come.
I understand that our mortgage lender, Barclays, will not be of much help since they effectively lend back the equity already paid on the mortgage which will not be enough to cover the cost of the works in the beginning.
After some preliminary internet research, I came across private finance options such as Property Development Finance, Refurbishment Finance and even Bridging Loans that seem to provide funds for such works but notice that they are either too short term or mostly directed at property developers.
Before I go further, may I please ask the members of this forum as to whether there are such loans available to us and where best to look for them.
Many thanks for your time in advance.
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Comments
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The current valuation is £2m.
What's the current mortgage balance?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
We have the Agreements in Principle from two highstreet banks and have not bought the house yet.0
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Buildstore offers finance that could possibly suit you, also peer 2 peer AssetzCapital could be worth trying.0
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richardjmcdougall wrote: »Buildstore offers finance that could possibly suit you, also peer 2 peer AssetzCapital could be worth trying.
I would treat this with caution OP.
Obviously check them out.0 -
If you are purchasing for £2m, how much of that is the Barclays mortgage and how much is your deposit?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Our deposit will be 300K for 85% LTV.0
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