smart51
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| posted on 14/12/15 at 04:59 PM |
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What is needed for a house to be mortgagable?
A house has come up for sale today on a street that we like. It needs some work but is priced accordingly. I phoned the estate agent today asking to
see the house and they suggested that we'd need to be a cash buyer as without a kitchen, the house is unmortgagable.
From the photos, it has a bath and sink upstairs. I presume there is a toilet behind the door. Downstairs the kitchen looks like it has never had a
fitted kitchen. Would a cupboard and sink with a connected tap and drain be enough to make it a mortgagable property? We'd be moving into a
rented house while repairs, decoration and a bathroom and kitchen are fitted. Does it really have to be livable to be mortgageable?
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ian locostzx9rc2
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| posted on 14/12/15 at 05:08 PM |
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You maybe able to get a mortgage but they will hold back some of the money until you fit a kitchen and any other thing they want doing this is what we
had to do many years ago to our first house .
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nick205
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| posted on 14/12/15 at 05:19 PM |
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I'd ask your mortgage lender what's up.
A kitchen can be had cheap and fitting it is easy.
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40inches
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| posted on 14/12/15 at 05:20 PM |
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quote:
Originally posted by ian locostzx9rc2
You maybe able to get a mortgage but they will hold back some of the money until you fit a kitchen and any other thing they want doing this is what we
had to do many years ago to our first house .
Yep! Our current house didn't have a kitchen. The building society placed a £2000 retention on the payment, this was paid when the kitchen was
completed.
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cliftyhanger
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| posted on 14/12/15 at 05:21 PM |
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Been a while for me....
but you may need to look at commercial mortgage if it isn't deemed liveable. After all they are looking at is from the perspective that if it
all goes t*ts up and you give up, they can auction it and get the debt cleared . At best you may need to have a very sizeable deposit.
More likely is that the sellers don't want to get involved with buyers who need a mortgage as there is a (usually correct) assumption that as
teh sale progresses they are far more likely to drop out, whereas a cash buyer is rather easier and more reliable.
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blakep82
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| posted on 14/12/15 at 05:24 PM |
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When i worked with mortgages, that particular lender insist a kitchen and bathroom is fitted to lend on. I believe this to be standard across most
lenders but you may find one or 2 who will lend.
Detentions were usually for things like roof repairs, guttering needing fixed etc.
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smart51
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| posted on 14/12/15 at 05:43 PM |
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Thanks everyone. We would be able to put down an 80% deposit with much of the mortgage being used for the renovations. Plus, with a loan to value of
about 40%, the lender shouldn't have too much to worry about
The sale of our house is well under way and to a cash buyer. We've instructed our solicitors that we will move into rented accommodation so
completion on the sale and purchase do not need to coincide. The house is empty so it could well be family who are selling the house. In our
position, we are almost as good as cash buyers. But we will still need a mortgage to complete.
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snapper
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| posted on 14/12/15 at 06:40 PM |
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The moment you get it on a restricted mortgage put s sink and an oven in plus some work surfaces
Job done, fully mortgageable, then plan the upgrade in slower time
With 80% upfront they won't bat an eyelid
I eat to survive
I drink to forget
I breath to pi55 my ex wife off (and now my ex partner)
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Benzine
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| posted on 14/12/15 at 07:34 PM |
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IBC of water and a take away menu, prob solved 
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motorcycle_mayhem
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| posted on 15/12/15 at 08:45 AM |
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With 80% down and a 40% LTV, they'll be very, very, very flexible or care not a jot.
It makes this particular pile of bricks very much your risk, not theirs.
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ChrisW
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| posted on 15/12/15 at 09:25 AM |
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Some friends of mine did this recently in a derelict farm house in Devon. They had to install a makeshift bathroom and kitchen in the one part that
had a roof before the mortgage would be granted. They stretched every bit of available money they available had to buy the place outright as it stood
and did those jobs on the lowest possible budget but good as gold the mortgage was granted and they are now doing the place up properly.
Chris
My gaff my rules
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BenB
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| posted on 15/12/15 at 01:18 PM |
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I reckon it depends a lot on the LTV and the mortgage supplier.
When we bought our house it had no central heating, the bog was in the garden (not the swampy type), bordering on lethal electrical wiring and the
kitchen was a stand-alone oven/hob and a fridge (both of which were broken) in an otherwise empty house.
They ponied up the mortgage just fine.
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steve m
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| posted on 15/12/15 at 02:37 PM |
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I do not know a thing about "the problem"
But how about buying a cheap caravan with a shower, as it will already have a kitchen fitted, and for mortgage reasons, its an outside bathroom and
kitchen but in the front garden ?
steve
Thats was probably spelt wrong, or had some grammer, that the "grammer police have to have a moan at
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