aka_shortie
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| posted on 6/9/11 at 06:02 PM |
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Any mortgage experts?
After some advice. Looking to buy a property that is up for sale at the moment. It's up for 80k but refurbished the ceiling price on the road
for a similar property is 150k.
The reason for the low price is that it has laid empty for a few years and has been vandalized. Graffiti on every wall. Kitchen and bathroom ripped
out. Basically needs gutting out and starting with a bare shell. Structurally it is sound though.
I have 40k in savings and was looking for a 70k mortgage, 10k deposit, leaving me 30k to do the work (Rough figures).
Because there is technically no bathroom / kitchen due to vandalism, I can't find a mortgage as it's in there requirements.
Any ideas who might offer a mortgage in this instance? OR other funding solutions.
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SeanStone
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| posted on 6/9/11 at 06:11 PM |
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i think you'll be looking at least 20% deposit to get a decent rate!
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r1_pete
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| posted on 6/9/11 at 06:19 PM |
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If you have enough equity in your existing property, you can re-motgage that, and buy the other effectively cash.
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blakep82
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| posted on 6/9/11 at 06:23 PM |
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whichever bank/lender you are planning to use for your mortgage, go into a bank branch and ask about bridging loans...
thats how people manage to borrow all the money they need for new build houses. the bank lends the money to do all the work, then once its done (or at
least got bathroom and kitchen fitted, so is at least habitable), the mortgage part then pays out to pay off the loan with the bank.
thats how RBS used to do it anyway, when i was unlucky enough to work for them. others should have similar processes.
bridging loan rates will be higher than the mortgage rates though. as pete says, look at borrowing the money against your current house to buy the new
one
[Edited on 6/9/11 by blakep82]
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James
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| posted on 6/9/11 at 06:31 PM |
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Break in the same way the vandals have, fit the cheapest 2nd hand bathroom and kitchen work units you can find!
Then get a proper mortgage?!
The stuff doesn't have to work so it can be cheap to fit... services would be turned off anyway so no assessor can test stuyff expecting it to
work.
Cheers,
James
------------------------------------------------------------------------------------------------------------
"The fight is won or lost far away from witnesses, behind the lines, in the gym and out there on the road, long before I dance under those lights."
- Muhammad Ali
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snapper
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| posted on 6/9/11 at 07:10 PM |
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It does have a kitchen and bathroom, it just needs decorating, go get a mortgage.
What the mortgage company means when they say no bathroom or kitchen no mortgage they mean that it has no plumbing or the house was not built with
them therefore was not a residence when it was built, your one was.
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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blakep82
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| posted on 6/9/11 at 07:42 PM |
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quote:
Originally posted by snapper
It does have a kitchen and bathroom, it just needs decorating, go get a mortgage.
What the mortgage company means when they say no bathroom or kitchen no mortgage they mean that it has no plumbing or the house was not built with
them therefore was not a residence when it was built, your one was.
sorry, thats complete nonsense.
he said it doesn't have a kitchen or bathroom, as they were ripped out. yes there is a room designated as a bathroom, and one as a kitchen, but
without a kitchen sink, or toilet, they are just rooms. the plumbing is all there, but you can't take a dump! it is therefore not habitable, ie,
you cannot really live there. its essentially a squat right now.
i worked for RBS mortgages for 4 years, and valuers willl not recommend a house suitable for a mortgage if it does not have a kitchen and bathroom
suite fitted.
also, interestingly, they won't do it on a property that has 2 kitchens fitted either...
________________________
IVA manual link http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1081997083
don't write OT on a new thread title, you're creating the topic, everything you write is very much ON topic!
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aka_shortie
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| posted on 6/9/11 at 07:51 PM |
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Cheers for the advice guys, never thought about re-mortgaging.
To clarify, there is a room designated for the bathroom and another for the kitchen. But vandals have ripped it out and nicked any visible copper
piping above floor level etc lol
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Tiger Super Six
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| posted on 6/9/11 at 08:53 PM |
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quote:
Originally posted by blakep82
whichever bank/lender you are planning to use for your mortgage, go into a bank branch and ask about bridging loans...
thats how people manage to borrow all the money they need for new build houses. the bank lends the money to do all the work, then once its done (or at
least got bathroom and kitchen fitted, so is at least habitable), the mortgage part then pays out to pay off the loan with the bank.
thats how RBS used to do it anyway, when i was unlucky enough to work for them. others should have similar processes.
bridging loan rates will be higher than the mortgage rates though. as pete says, look at borrowing the money against your current house to buy the new
one
[Edited on 6/9/11 by blakep82]
That is not correct.
A new home would be a self build mortgage that releases funds in staged payments at set build points i.e. ground level, first fix etc. you won't
get one of these for this. Not many people get bridging loans as they are SO expensive.
Mark
Tiger Avon
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blakep82
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| posted on 6/9/11 at 08:59 PM |
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quote:
Originally posted by Tiger Super Six
quote:
Originally posted by blakep82
whichever bank/lender you are planning to use for your mortgage, go into a bank branch and ask about bridging loans...
thats how people manage to borrow all the money they need for new build houses. the bank lends the money to do all the work, then once its done (or at
least got bathroom and kitchen fitted, so is at least habitable), the mortgage part then pays out to pay off the loan with the bank.
thats how RBS used to do it anyway, when i was unlucky enough to work for them. others should have similar processes.
bridging loan rates will be higher than the mortgage rates though. as pete says, look at borrowing the money against your current house to buy the new
one
[Edited on 6/9/11 by blakep82]
That is not correct.
A new home would be a self build mortgage that releases funds in staged payments at set build points i.e. ground level, first fix etc. you won't
get one of these for this. Not many people get bridging loans as they are SO expensive.
different bank will have different names for it i guess, R BS call them bridging loans, which are NOT dealt with by the mortgage centre, so not
something i dealt with. the paoint was though, see what the bank branch can offer before getting the house to a state where u can get a mortgage
________________________
IVA manual link http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1081997083
don't write OT on a new thread title, you're creating the topic, everything you write is very much ON topic!
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zilspeed
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| posted on 7/9/11 at 05:28 AM |
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The house fails to meet the tolerable standard.
There are grants available to fund the provision of the items where it fails.
Kitchen and bathroom would be in there.
This is how it works in Scotland (it's part of my job).
There should be an equivalent scheme in England.
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