Mortgage on Uninhabitable House

rhysjos

Hello, We have recently been given a building off my father, the transfer has been done and it is now in my name, it used to be his stores before he retired, it around 40 ft x 20 ft, 2 storey and is valued at 65k we have had plans drawn up into a 3 bedroom house and are in the process of putting the planning in to the local council, we are going for a full planning with a change of use as it is currently under commercial stores, this should not be a problem as it is the only commercial property within the full residential street, my question is how hard will it be to get a mortgage on it. and has anyone had a similar experience? it already has a full brand new slate roof about 5 yrs old, it has electricity and sewer drainage but no water, i have looked into it and seen most mortgage lenders only lends to habitable properties, but surely there must be a type of mortgage out there for someone in this kind of situation, it is not the end of the world if i have to put a kitchen sink in there and running water but i just want to do it right and put my money into the actual build if this makes sense, thanks Rhys

MovingForwards

It's not a conventional mortgage you will be looking for as they only lend on properties with a bathroom and kitchen.

It's a specialist mortgage and you may be best finding a good broker to assist you.

Thrugelmir

You'll require specialist finance to fund the redevelopment. Have you had the plans fully costed yet? 

ACG

Typically you would be looking at a bridging loan which is for a maximum of 12 months at a rate of around 0.7% per month (so around 8.5% for the year). 

As your dad owns the land, could you not look at taking out a loan to do the works to get it to a habitable condition and then take out a mortgage to pay off the loan and fund the extra works needed? It would probably be cheaper to do it that way.