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  • Mortgages & Finance

    Financing a cheap derelict building

    Hi everyone, Hope all is well.

    An opportunity has presented its self and i really don't want to turn it away,

    A derelict property very local to me is up for sale but its cheap. £55k. i know the property very well as i have worked on a renovation just next door to it.

    I don't have the funds currently to cash buy so i made a few phone calls and the lenders either won't mortgage an inhabitable property or the bridging type finances aren't interested because the value is too low.

    its a catch 22. i can probably get 25%-35% together but thats about it.

    is there any specialist lenders of bridge-lenders that will finance a non habitable for £55k?

    If its any conciliation a slightly dated, identical property next door on the other side sold last year for £120k so if i renovate well it should clear £130k easily.

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    My mate dodgy dev will lend you, just make sure you can pay it back, my legs haven't been the same since

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    Evening Michael,

    Yes, there are bridging lenders that will lend at this purchase price and would be comfortable at the loan to values you suggest. I’m a broker and I’d be more than happy to take a look at this for you. Feel free to call me on 01249 652939 or 07824809473.

    Best,

    Wayne

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    Hi

    Is it possible to get a bridging loan without own deposit in that case?

    Regards


    Paul

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    If you have additional security...yes. Perhaps another BTL with equity?

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    __________________________________________________________________

    BTL's, residential mortgages, bridging, life cover and estate planning  

    http://www.hdconsultants.net        

    For Commercial Finance, complex BTL and HMO funding, development finance, international and expat mortgages, and portfolio BTL mortgage services Assured Funding website.

    Telephone: 07751042485      01206 654444


    Michael,

    If you would like to send  details, we may be interested in funding it, or possibly doing a JV with you. Either PM me on here or email -   info(at)stewardson(dot)co(dot)uk. Mark it for my attention.

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    Phil Stewardson.

    Stewardson Properties.

    Stewardson Developments Ltd.

    Burson Land Ltd. & Jennings & Gilchreaste Ltd.

    http://www.stewardson.co.uk

    Follow me on twitter - @philstewardson

    Hi there,

    You are correct in that ‘normal’ mortgage providers (for residential or BTL) are highly unlikely to touch the kind of property you are describing.  I asked our Bridging/Development Finance department and they said they have about three lenders who can start form £50k (Precise, Affirmative and Amicus) plus another three who have lower starting points (Roma, Together and the Bridge Crowd).   My advice would be to get a broker to look at a solution for you as the better proposition might be for the full £50k (with a possible cross charge set up and keeping your savings in the background) but it might be for the sole security on this property and one of the lower limit lenders.  But it depends on what they all offer and your proposed timescales etc.

    I hope this helps,

    Cat

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    Call the PT Broker Hotline on 0333 363 6507 or email us at ptbrokers@johncharcol.co.uk