mortgage

David_777

hi me and my wife have found ourselves in a situation, we have an outstanding mortgage of 160,000 on our property and have recently had a valuation of 600,000 dependant on us spending a further 30k to modernise ready for selling
we don't have the savings to do this and remortgaging the property doesn't seem an option as we are currently both self employed and whilst we can afford repayments
unfortunately on paper that isn't the case
i would appreciate anyone with advice as to what we could potentially do?
we are wanting to sell the property to maximise profit would need to invest approx 30k first

spadoosh

If youre spending £30k on improvements the most youre adding is £60k in value.

Just sell the house, forget about maximising profit.

ACG

Being self employed should not prevent you getting a mortgage.

If you pull the money out, you will have PAYE and dividends, if you are leaving the money in, there are lenders who will work off net profit and paye.

If neither of those are available then you are either fudging the figures or you are simply not earning enough. There is no magic solution, you can either evidence your income or you can not. If you can not then short of borrowing from friends/family I am not sure what you expect.

David_777

thats incorrect, we have been told by 3 separate estate agents that by modernising the rest of our house which we have budgeted around 30k to do then we will be able to sell the house for around the 600k mark?

it is wrong to suggest that 30k will only return 60k ??

also whilst we are self employed we currently do not have the books to suggest that we can borrow more on our current mortgage so was hoping that the equity we have in the house which is about 440,000 would be enough for a lender to come forward and offer us the money regardless

David_777

by the way "spadoosh" what is the don't be angry message for out of interest??

Neutrinno

David_777 wrote: »

also whilst we are self employed we currently do not have the books to suggest that we can borrow more on our current mortgage so was hoping that the equity we have in the house which is about 440,000 would be enough for a lender to come forward and offer us the money regardless

Then you will not be able to remortgage. Lenders have to ensure a mortgage is affordable based on your joint income, they will not lend based on the amount of equity in the property.

David_777

well thanks anyway, i was just wondering if there were financial advisors out there who may have a different opinion?

Splatfoot

What is it worth without the improvements?

David_777

hi its only worth 400- 425k without the 30k investment which i will be doing myself as i am a builder

silvercar

I was curious to know what you could get for £30k that would add £160k to the value, but now you have said you are a builder I assume material is coming at cost price and labour is either yourselves or mates rates.

I'm still slightly puzzled that your income on paper can't justify the mortgage increase, even on self employed earnings. Unless you do some jobs for cash, in which case you reap what you sow.

Other funding options - bank loans, secured loans from secondary lenders, bank overdraft, take out new credit cards.....normally I would stay clear of anything with high interest rates, but if 30k is going to yield 160k then go for it!

csgohan4

David_777 wrote: »

hi its only worth 400- 425k without the 30k investment which i will be doing myself as i am a builder

as a buyer seeing the previous history of your house price and a noticeable mark up, I would probably look elsewhere.


I presume the valuation after renovation was done by the Estate agent as above? Do you believe them? they want your business of course.


Why not get a RICS valuation done which is more accurate