How to proceed? Hopeless case?

ScotDogLady

Hi :hello:

Looking for some advice re securing a mortgage/secured loan on a renovation property I already own. I have a good job but have had some credit issues in the past, explained below.

First the bad. I witnessed the murder of a stranger at close range in 2010; the incident was unbelievably horrific and I was badly affected afterwards. At the time, I had a very good job as a teacher/middle manager in a large school. I owned a shared ownership flat, with a mortgage. After that night, I developed ptsd and eventually stopped work. I needed four years of therapy to recover.

At this time (circa 2011) I got into some financial difficulties: one credit card bill was written off on health grounds; one overdraft paid off and one credit card passed to debt collector before being paid off in full (last one was an accident, I was too ill to realise it was a different debt to the overdraft and wrongly told my advisor that it was paid off).

I was obviously found unfit to work and was retired from teaching on health grounds. I went onto disability benefits, with a small occupational pension. I did keep on top of my mortgage, religiously overpaying by £200 each month. My health meant I was not so on top of credit card payments, so have a few late payments here and there.

In 2016, I sold my shared ownership flat. By thus time, despite all my troubles, I had built up an overpayment of £25,000. I sold the flat, paid the mortgage company back and was left with £100,000 cash.

In 2017, I used the cash to start to rebuild my life. I bought a renovation property in rural Scotland, somewhere with very few people and no crime, where I would feel safe. The property had been empty for decades and has been badly affected by dry rot. It had a homebuyer's report valuation of £200,000 in its current state but was for sale for £120,000. I actually paid £80,000 cash. No mortgage currently.

Moving to a peaceful area transformed me. In October 2018 I was able to pick up where I'd left off and returned to full time work as a secondary school teacher. My salary is circa £40,000, permanent post employed by local council.

Since buying the house spent £25,000 getting the building dry and structurally safe. I have also had some plumbing/heating works done. I still need to spend another £5k on chimneys to eliminate the last few water ingress spots. However, I cannot get the biggest issue (extensive dry rot) resolved without securing finance from somewhere.

I have a specialist firm of dry rot surveyors coming in to do full exploratory works with a view to providing a detailed quote, but on the basis of what they could see, the spread is extensive and they think I will need to raise £60-80k for them to rip out all affected timbers and reinstate fully, with an insurance backed guarantee from a nationally recognised firm (recommended to me by the council's most senior building officer).

Work would take 3-4 months. House value at the end of these essential works would be in excess of £240,000 (perhaps as high as £350k with modernisation). I don't intend to sell it, will be my forever home. Despite the dry rot, I fell in love with it.

So my question is..

Is there any way someone in my position can get a mortgage or loan to complete these works? I realise it's a tough ask but hoping it's not impossible.

To save up this amount of cash will take too long.

Ps I don't have any current debts excpet £350 on a credit card with a £1000 limit. No overdraft.

Apologies for writing a novel :rotfl: Thanks for reading :beer:

AnotherJoe

Novel not necessary and distracting.

• Previously had issues in 2011, ran into arrears.
• Bought a money pit in 2017 for cash.
• Been in a steady job since Oct 2018.Salary £40k.
• Want to borrow £80k to fix house problems.

See a broker.

ACG

There is a lot there, most of which is not necessary, we only really need facts and figures (I do not mean to be blunt).

Chances are you are going to need a bridging loan to cover the work. Rates are going to be around 0.8% per month with fees of around 2-3% of the loan amount.

Once the work is complete and the building is habitable (not necessarily finished) then you can remortgage to pay off the bridging loan.

Definitely one for a broker.

Martah

Hey,

I can’t offer you any advice It seems you got some good advice with some options to explore anyway..
I did enjoy reading your story and finding out that things have worked out for you after that very traumatic experience.
Good luck fighting dry rot and continue to enjoy your life in Scotland :-)