Mortgages....

[Conanius]

So, the time is drawing closer to us wanting to buy somewhere.

We've seen a house that looks absolutely epic, but to be blunt, it needs work doing, and not just a lick of paint. It's got the potential to be incredible (its on a 1/3rd of an Acre plot and is in our ideal location) but its going to take time to get all the work done.

We are confident we could live in it 'as is' and work our way through dealing with the house, but we need to work out where we are money wise as to whether this is even an option beyond evening discussions.....

The property is on the market for lolcash, but we've been told by the agent that an offer would certainly be considered. I think I can get a mortgage for the amount we would be willing to pay, but as the money we have set to one side for deposit would then be used.... I have no idea how I could then raise the capital to do the work to the house. The property is in need of modernisation and would easily show a return on investment.

Potentially we'd consider doing something like a 100% mortgage (do these even exist anymore?!) and then spending the cash we would have used as a deposit on starting doing work on the house. I have no idea if these even exist anymore, let alone the likely monthly repayment costs and if they are available to first time buyers.

So... we need a mortgage advisor recommendation to help explain the best way forward. Independent preferred obviously, but we want to get a feeling as to what our options are. Personal recommendations highly preferred.

 

[Conanius]

Thanks for the replies guys, gratefully received.

The purchase price we'd be looking at offering is 200k. I think if we could get a 95% mortgage the cash we'd have left would go a decent way to shoring up the existing house in the meantime to be liveable, accepting that the future would bring epicness....

Properties around it are going for 350-400k, so I think this gives you an idea of the scale of the project, its a 1920's property that only had central heating put in during the last 10 years !

However a lot of these locally priced houses are sporting significant extensions/improvements. The land and precedent for planning permission is there, and this would be on the cards for further down the line.

I guess what the hope would be would be buy now, do what we can, and then in 2-3 years look to extend the mortgage to do the real brunt of the building works.

 

[Conanius]

It's very early days as to cost of tidying up the existing property. We've only had one viewing so far, so need future viewings/get some friends in who have skills to get an idea of the state of things etc etc.... I'd imagine getting the existing property to a liveable standard could be achieved for 5-10k, but in honesty I have no idea. We wanted to get an idea on mortgages before we could really understand what the chances were as to affordability.

Future work I have absolutely no idea on. The garden must be.... 250 foot long? so it all depends how much we would want to extend out onto/how fancy the kitchen was going to be/whatever... I'd be surprised if you couldn't sink 100k into the property and not see a return.

 

[Conanius]

And this is the exact reason in my first post I asked about mortgage advisor recommendations.... I have no intention of crucifying myself, and want to see if this is viable.

 

[Conanius]

No worries on the hi-jack, it was relevant !

So the major reason why I could cope with the 'pain' of living around paint tins etc is that we would be happy here, well, forever, we would never need to move.

I've spoken to my bank this morning who have agreed in principal a mortgage, so I know I can get one. Now I just need to find what the best deal is that I can find.

So, as per post 1, any recommendations for independant mortgage advisors?

 

[Conanius]

Just at thought but if houses in the area are worth 400k. If you can get planning to knock the house down and build 3 or 4 new ones on the land you should get 150k per plot.

Also keep in mind if you borrow with a very high LTV ratio your interest rate is going to be very high. However maybe if you take a 2 year deal at 90% LTV and then do up the house and its revalued in 2 years at 400k you can then get very good rate as your LTV will not only be 50%.

First point - not interested in doing it, good idea, but just not for us....

Second point - Thats the exact plan

 

[Conanius]

due to the layout of the property that wouldn't be hugely feasible. Certainly a consideration though. I'd prefer the big garden to be honest though ! Its a huge attraction of the property.