Financing a property renovation purchase - advice please
Discussion
I'm currently house hunting for myself and there's a 3 bed semi Victorian cottage in a village nearby that the council are selling. It's structurally sound, on it's 2nd roof and the timbers were replaced too although there are two small 1cm light holes visible from teh loft where slates have moved.
Inside, it's very messy, has running water, a sink and cupboards in teh kictehn but looks unlived in for a couple of years, windows boarded up, no internal doors etc. It's a very desirable commuter location for London and the other 5 similar semis have sold at 300-350 in good condition.
I've renovated places as bad before and happy to take on the work, but it's likely to get 200-220 at auction and speaking to my mortgage broker he thought it should be financable, but has checked with lenders and a bridging company and none think it's likely to be lendable on, even with a 50% retainer.
I've got 110k in cash and a flat that's going through for sale currently at 160 unencumbered so could buy in cash when this completes, but will need to secure finance to buy before then. What are my options? There must be something seeing as I have in cash and property more than the value of what I'd like to buy, which itself has a decent realisable value.
Inside, it's very messy, has running water, a sink and cupboards in teh kictehn but looks unlived in for a couple of years, windows boarded up, no internal doors etc. It's a very desirable commuter location for London and the other 5 similar semis have sold at 300-350 in good condition.
I've renovated places as bad before and happy to take on the work, but it's likely to get 200-220 at auction and speaking to my mortgage broker he thought it should be financable, but has checked with lenders and a bridging company and none think it's likely to be lendable on, even with a 50% retainer.
I've got 110k in cash and a flat that's going through for sale currently at 160 unencumbered so could buy in cash when this completes, but will need to secure finance to buy before then. What are my options? There must be something seeing as I have in cash and property more than the value of what I'd like to buy, which itself has a decent realisable value.
Is the new property not mortgageable? If its got a kitchen and bathroom, it generally should be. If not you might be able to get self build finance. Feel free to PM me and I can let you know what I might be able to assist with.
Can you not release some equity from the flat you are selling?
Can you not release some equity from the flat you are selling?
m4tt said:
Is the new property not mortgageable? If its got a kitchen and bathroom, it generally should be. If not you might be able to get self build finance. Feel free to PM me and I can let you know what I might be able to assist with.
Can you not release some equity from the flat you are selling?
Thanks - pm sentCan you not release some equity from the flat you are selling?
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