Mortgage on a rebuild

[GT03ROB]

I'm currently looking at a property which is a bit more than a shell, but not much! Needs a substantial amount of work to make it habitable. The windows & doors are boarded up & the roof is sound, so it's basically watertight. I would be looking at almost a complete redevelopment of the property but retaining the shell.

Clearly a property in this state is going to have a valuation that reflects condition, but is this the sort of property traditional lenders would consider a mortgage on? Or would this require a mortgage more consistent with self-build?

[Boshly]

Refurb=17.5%Vat
New build mostly zero rated.

Have you done the sums?? Especially if you have to compromise the interior.

[GT03ROB]

Boshly said:

Refurb=17.5%Vat
New build mostly zero rated.

Have you done the sums?? Especially if you have to compromise the interior.

The interior layout, looks like it could be made to work relatively easily, so to be honest had not really considered new build. My other concern was that being in a National park planning consent on a new build could be problematic, albeit I'm the 1st to concede I don't know too much about it!

[blindswelledrat]

Its difficult to borrow money over and above a properties value at the moment which it sounds like you need to do.
None of the main mortgage companies will do it i.e. if the house is worth £100k, you need to spend £100k to make it worth £230k- you will struggle to borrow much more than £80k against the whole job. THey don't take into account final value.

There are, however, definitely a couple of companies that do it (One or two last time I checked) and even they will only pay you out in stages- thus you need to stump up at least some money up front.
THe user on here called Scotal is a broker and I thoroughly recommend getting in touch with him for more information. PLenty on here can vouch for hiim

[GT03ROB]

blindswelledrat said:

Its difficult to borrow money over and above a properties value at the moment which it sounds like you need to do.
None of the main mortgage companies will do it i.e. if the house is worth £100k, you need to spend £100k to make it worth £230k- you will struggle to borrow much more than £80k against the whole job. THey don't take into account final value.

There are, however, definitely a couple of companies that do it (One or two last time I checked) and even they will only pay you out in stages- thus you need to stump up at least some money up front.

THe user on here called Scotal is a broker and I thoroughly recommend getting in touch with him for more information. PLenty on here can vouch for hiim

Cheers, sounds like Scotal is the man.

The figures are probably in the region of £450 current worth (assuming anything that is uninhabitable has any worth!), spend £250, requiring borrowing around £250-£300.

[scotal]

You, as they say, have mail.

[GT03ROB]

scotal said:

You, as they say, have mail.

Cheers, will read tonight, as work blocks access to non-work email accounts, but not PH's!