Locked equity

Beetee_2

Hi everyone

I have a mortgage on my right to buy property. It is a high rise property the sort only few lenders are interested in. That was three years ago. Now am trying to remorgage to allow take out some equity as am interested in invested in property development - i mean fix and sell for which i need some fund. I have tried remotgaging but a lender was not willing to lend me much more than the current lender. The property was last valued £100,000 by a lender, another lender valued down at £80,000 the same value that it was bought three years ago. The current mortgage is about £50k. The area is London SE17. Although my property is due to be compulsorily purchased because of regeration plan for the estate, it may be another 5 years time. I feel frustrated that i have an equity locked in my property that i couldnt take out to invest. Is there any way out of this predicament?

Pls help.

Doozergirl

I don't believe that you genuinely have very much to invest; if mortgage companies will not lend you as much as you want, either because of your current income or because of the value of your property, I think you would be unwise to try and release any more.

Also, unless you have a big fat pot of cash, property developing is not the career to opt for right now. You need to be able to afford to sit on a house if needs be.

The sort of money you might have been able to release won't take you very far in property speculation in London at all! I suspect you own one of the cheapest properties for miles and miles around

lynnexxxo

I think the bubble has burst on property developement. In the current climate the market is dropping, so its not really the time to think about trying to buy to do up.

I'd imagine lenders will be wary if your home is going to be subject to a compulsary purchase order - do you have any idea what they will pay you for it? Do you have any right of negoiation?

You would not want to be in the situation where the mortgage is greater than the price the council is willing to pay.

Beetee_2

Thanks for your reply lynnexxxo
The council is willing to pay the current market + 10% compensation + legal and removal costs, so i dont think i will lose out. also i have tried a lender who is willing to lend but not the sort of money am looking for. If i cannt get money for buy and fix property, any chance i can get enough for offline plans, etc? just want to start doing something in the time being. it appears to me you are not advising me to do anything property investing in view of the credit crunch climate. Is this so? What else would you recommend if any at all?

Doozergirl

Offline plans? I assume you are talking about off plan property to sell on when it's finished?

Have you read or seen the news at all.

I wouldn't invest in off plan in 2004. The flats simply aren't even being sold brand new for the prices they were selling them for back then. I've seen flats sell for half the value they were apparantly bought for. I still won't buy them!

The equity in your home is not money to play with. It's keeping a roof over your head. Your home is not worth enough and your equity not great enough (even if you owned the thing virtually outright, IMO) to start gambling on the property market with no experience at this point in time.

lynnexxxo

Beetee,

what I (and doozergirl) are saying is that now is not the time to invest in any type of property, and certainly not in newbuild flats. They are generally the first to lose value.

What else could you do to make some quick cash??? Well apart from the obvious (better paid job, robbing bank, marry a millionaire) i wish i knew too!!!

Try the up your income or gambling online introductory offers boards for some ideas of how other folks increase their income.

Good luck

SquatNow

lynnexxxo wrote: »

Try the up your income or gambling online introductory offers boards for some ideas of how other folks increase their income.

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:


...hang on give me a minute....


:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

OK I'm done now. "Take up gambling in the hope of raising some money to speculate in property". Is that really the level of advice people have been reduced to giving now?

lynnexxxo

SquatNow wrote: »

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:


...hang on give me a minute....


:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

OK I'm done now. "Take up gambling in the hope of raising some money to speculate in property". Is that really the level of advice people have been reduced to giving now?

No actually. The OP asked a question. My advice (and others) was that now is not a good time to invest in property. The OP then asked what else they could do to make money. I replied to check out these boards as alternative ways of making a little extra cash.

I'm glad though that I have cheered up your day.

moneysavinmonkey

SquatNow wrote: »

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:


...hang on give me a minute....


:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

OK I'm done now. "Take up gambling in the hope of raising some money to speculate in property". Is that really the level of advice people have been reduced to giving now?

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

go read the online gambling introductory offer boards!!!
hint-it's not about gambling

Beetee_2

Thanks everyone. Point taken. You appear to know whats happening out there.

Rabiddog_2

Where is se17? I know someone who has just done the exact same thing as you. HOWEVER you glibly, stated that the council will pay market rate plus 10%? What happens if when the council wants to compulsory buy the flat its only worth 35k or 40k? you could be left with rather a large debt, rather than any equity...which would be a bad thing. Anyone else got any knowledge of compulsory purchase?