FTB looking for Mortgage + Money for renovation

Phunky

Markyt wrote: »

I've just checked with our underwriters, and it is still allowed, but is assessed on a case by case basis. I'm not going to say which lender, as I don't want complaints about touting for business etc, but if we do it then other lenders will. Ask around.

Thats very interesting as with this building being in a conservation area it has potential to increase in value.

herbiesjp

What is the purchase price?

Phunky

£118,000 is its current asking price but im thinking it would go for around £105k

herbiesjp

OK - so you put 10% deposit of £118k (worst case scenario) £11,800 - is that do-able? That would be £5,900 each

WOuld you father then be able to raise the other £15k - so £20k in total for you?

Phunky

We would struggle to get 10% so soon hence why we have the offer from my father to use his house as part of the deposit (still unsure what he meant with this)

homer_j_3

Saltire - Thats not too far from me - lovely area. Infact its a world heritage site isn't it.

If you can fund through your fathers equity then you could always then remortgage afterwards and pay him back HOWEVER that relies on you being good with a budget and getting it at the right price at the start as prices are coming down - even there.

You have mentioned another one up for sale at 51k more but its not sold so do not use that as your figure - find the sold prices for that area

Phunky

yeah it is a World Heritage site, the prices are dropping in that area but most of them tend to be very run down and need a lot of work on them also to re-modernise them.

I think if we was to go for this it would have to be via my father, could someone explain how this would work? Would it mean him re-mortgaging to release that equity?

homer_j_3

he would have to take a further advance with his current lender, remortgage or take a secured loan out. Depending on your fathers situatuion to which one is the best.