Borrowing after a cash buy

bizzyblue13

Please bear with me on this one, it's a bit complicated but I'd like some advice on the best course of action to take as I've read conflicting views online.
In a nutshell, myself and my fiance have seen a house we'd like to buy for £260,000. It would be a full renovation, costing an estimated £100k+ for full re-wiring, decoration, extension, etc. For context, a similar fully-renovated property on the same street sold for £439,000 just before Christmas.
We're fortunate in that we have around £95k savings and the in-laws have offered to lend us the remaining £165k so that we'd be in a position to buy the house straight away with cash. We would then need to get a so-called 'unencumbered' mortgage I believe against the property so that we're able to pay back the in-laws. First two questions: I believe that some lenders will not provide an unencumbered mortgage until 6 months after you've bought the property. Is this true? And secondly, would it be possible to get an unencumbered mortgage for more than the current property value so that we could use the extra money for the renovations? 
The alternative scenario for us is that we get a mortgage the conventional way for £165k, we borrow the £100k from the in-laws for the renovation work and then once everything is done we re-mortgage and pay the in-laws back. There are two things holding us back on this: 1) Not being a cash buyer might make us less likely to secure the house straight away. 2) My other half is currently finishing a degree and doesn't start work until September, so he currently has a significantly lower monthly salary now than he will in September (he has signed a contract for a job), but this might make it difficult trying to secure a mortgage at the moment.
Completely aware that we're in a pretty fortunate situation, but knowing which route is going to make more practical and financial sense is proving to be difficult.
Any advice would be much appreciated!! 

[Deleted User]

Some lenders will lend on day1 of registration, some will need to wait 6 months.  Generally the ones that lend immediately will only do so based on the purchase price.   So if you buy a £300k house for £50k they will only lend on the £50k purchase price.  

There are plenty of good options for day1 remortgages though (it would most likely be a remortgage you are doing here)

Can you buy as cash, remortgage to release funds to complete the work and then remortgage again to release the full value and repay in laws?

Whats_your_forte

Virgin/HSBC/Nationwide would look at these sorts of deals for you subject to underwriting.

bizzyblue13

Thanks, both. I'd not considered multiple remortgages but this seems a good way to go. Assuming this is relatively straightforward to do, providing you account for early repayment charges, etc? Just doing some research on Day One Remortgages and they seem well suited to our situation.

brianthebald

Does anyone know if you can mortgage a property for at least ten years  when you are in your late 70's.  i.e. presnt home fully paid for but dont wish to  go down the Equity Release route. 
"brian the bold"

Whats_your_forte

@brianthebald Yes but if not looking the ER route, then you need to have income to support the mortgage request. You can have an ER mortgage and then cover the interest yourself if you want a variation on a theme