What are the chances

andybirch

I think I know the answer to this, but I thought I would just check.

A property is coming up for auction in mid September. What are the chances of raising a self cert morgage to buy and renovate this property. I would probably be looking for £250k. Once done up I would expect it to be £300k+

Now here's the problem. I'm currently salaried, around £20k p.a., have a morgage of £46k on a property worth £120k. Morgage repayments will be taken out of the advance untill sold.

I know what the answer is going to be, but it doesn't stop you thinking, does it.

Cheers,


Andy.

andybirch

I'll take it as a no then.

Ian_W

Andy,
As no-one else has yet replied, except you, at 10x salary - NO - does seem a good starting point!! :rolleyes:

However, I'm no expert and there may be specialist type loan more suitable than normal mortgages. There are some very helpful brokers who lurk on the site, more usually during the week - think they must retreat to their country estates for the weekend!! - so keeping checking back. Maybe the answer will then be YES!!

andybirch

Thanks Ian.

I guess property development isn't something you can just jump in to, especially at that level. It always seems easy after a 1 hour t.v. programme.

Obviously, if there is a chance that it could happen, I would love to know. There's still 4 more lottery draws before the auction.

Cheers,


Andy

meanmachine_2

You could look into BTL mortgages, but the lender presumes you're going to rent the place out afterwards, and would be seeking an assurance that the rent will cover the I/O mortgage.

Rather than watch Property Ladder and get the false impression that property is only a one-way bet, I suggest you watch So You Think You're a Property Developer instead on Channel 5.

In previous years a boom in prices has prevented these twerps from going bankrupt. In the next few years you'll be seeing a lot of these "disaster shows" regarding property - mark my words.

JanCee

At auction if your bid is successful you have to pay 10% on the day and complete within 28 days. I have even seen some houses at auction with completion within 21 days.

Unless you have the finance in place prior to the auction don't even think about it you could risk losing your deposit.