Funding purchase of a derelict property
Discussion
Go talk to a mortgage broker and see what they come up with. Granted it was 11 years ago, but we had a 100% mortgage on a property that had been derelict for 15 years previously - at the time we had a minimal mortgage on our then main house, and had some building surveys, builders rough fag-packet quotes and timescales for doing the place up, and showed that we had the cash in the bank to pay for that work at which point they were happy to run with the mortgage. It was about £150k IIRC, then "became" the main mortgage when we moved in two years later, with our old house becoming a rented property.
Build Store have financial products specifically for projects like this: http://www.buildstore.co.uk/finance/
Right went and had a better look at the site / property this evening and suspect it is well beyond my knowledge / abilities to sort out or even guess at what needs doing. Given the auction is quite soon I am going to pass this time.
It was lot 13 in this auction
http://www.cheffins.co.uk/catalogue/propertyauctio...
Cheers
Ben
It was lot 13 in this auction
http://www.cheffins.co.uk/catalogue/propertyauctio...
Cheers
Ben
B17NNS said:
BigBen said:
It was lot 13 in this auction
Looks to me like you would be buying a (big) plot.Demolition and new build is they way forward for that site I'd think.
Numerous abandoned vehicles though. Tuscan in a field?
The abandoned vehicles looked to be quite interesting but the abandoning obviously happened a very long time ago so they are proper f**ked to use a technical term.
If I had spotted the auction six to eight weeks ago I might be taking a different view as I would have had time to do the necessary homework, but sadly have to leave it this time despite it being a huge plot on a road I have fancied living on for a good while now
Ben
BigBen said:
B17NNS said:
BigBen said:
It was lot 13 in this auction
Looks to me like you would be buying a (big) plot.Demolition and new build is they way forward for that site I'd think.
Numerous abandoned vehicles though. Tuscan in a field?
The abandoned vehicles looked to be quite interesting but the abandoning obviously happened a very long time ago so they are proper f**ked to use a technical term.
If I had spotted the auction six to eight weeks ago I might be taking a different view as I would have had time to do the necessary homework, but sadly have to leave it this time despite it being a huge plot on a road I have fancied living on for a good while now
Ben
B17NNS said:
BigBen said:
It was lot 13 in this auction
Looks to me like you would be buying a (big) plot.Demolition and new build is they way forward for that site I'd think.
Numerous abandoned vehicles though. Tuscan in a field?
garycat said:
B17NNS said:
BigBen said:
It was lot 13 in this auction
Looks to me like you would be buying a (big) plot.Demolition and new build is they way forward for that site I'd think.
Numerous abandoned vehicles though. Tuscan in a field?
I'd go with the Buildstore option - I've spoken to the before about derelict property purchase and they were very useful and could setup all sorts of packages such as taking a charge on another property.
I'd think you'd need a 50% of market valuation deposit though in this market and ideally a reasonably saleable area - so South East would be ideal, but a remote house in the north could be more challenging.
I'd think you'd need a 50% of market valuation deposit though in this market and ideally a reasonably saleable area - so South East would be ideal, but a remote house in the north could be more challenging.
The legal pack makes interesting reading:
Legal pack said:
25% Enhancement of value fee payable on any planning permission granted within 20 years of the date of sale
Planning permission refused in 2004 for two replacement dwellings
Planning refusal in 2007 for industrial use (argument based on 10 years use as a tip)
Environmental report prepared to support 2004 planning application references the site containing:
- 200 scrap vehicles
- a stockpile of engine parts
- vehicle tyres
- up to 20 40 gallon oil drums in varying condition
- over 20 gas cylinders
- up to 50 refridgerators and freezers
- washing machines
- up to five large piles of bicycles
- asbestos sheeting
- up to 100 car batteries
- over 50 areas of burnt ground (use unclear)
- household and miscellaneous refuse
While the price is very attractive for the plot and location there's plenty of risk and expense associated with trying to develop the site. I'd still be tempted to look more closely were I back in the UK...Planning permission refused in 2004 for two replacement dwellings
Planning refusal in 2007 for industrial use (argument based on 10 years use as a tip)
Environmental report prepared to support 2004 planning application references the site containing:
- 200 scrap vehicles
- a stockpile of engine parts
- vehicle tyres
- up to 20 40 gallon oil drums in varying condition
- over 20 gas cylinders
- up to 50 refridgerators and freezers
- washing machines
- up to five large piles of bicycles
- asbestos sheeting
- up to 100 car batteries
- over 50 areas of burnt ground (use unclear)
- household and miscellaneous refuse
Edited by tokyo_mb on Thursday 24th June 06:56
Edited by tokyo_mb on Thursday 24th June 07:06
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