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To fund developments. I have remortgaged houses but when they are completed I can not mortgage onto simple btl, mortgages
As we are developing more properties, this is becoming a problem, unemcumbered developments and mortgaged houses
The link above shows an outer london development that is 2, 1 bed flats and a 2 bed flat, occupied by tenants and signed off
how do others get mortgages on these types of buildings
FCA 32 years in practice, BTL since 1992
Am I missing something? What is the problem? Sorry busy or daft or both me!
if the liability can not be attached to the asset, then i will eventually run out of liquidity. as all the houses become mortgaged
next development is £400k purchase plus build costs. it is the other half of a pair of semi's (the other one I own with no mortgage) we are hoping for an additional 4 flats from it on top of the existing 4 units and a house
broker says to remortgage another house for £200k and then lend the purchase price to my limited company as too many obstacles to getting a mortgage on mixed use properties when you own the other building attached to it.
I may still be slightly misunderstanding but I agree - if there is insufficient uplift in the development and insufficient income from other sources then yes you can only borrow a finite amount until values grow....others will use the rental income accrued to fund further deposits for developments. Your original post does not refer to mixed use....if the property is wholly residential use as you imply you can borrow up to 85% in the Ltd Company though i'd try to encourage you to only go for 75-80% because of greater competition therefore better rates at these LTV's....
David, I'm not sure that I fully follow you here, but have you been mortgaging a property in order to use the finance raised to buy another property outright? Once purchased and refurbished, you are then looking to raise finance on that property to fund the next. Is that correct? If so, this shouldn't be too much of a problem, judging by the converted public house shown. There are always going to be little niggles in each mortgage deal, but there is usually a way to do the deal.
If you would like to contact us at HD Consultants, I will happily look through your situation. We are a specialist BTL broker with many years experience. Best number is 07751 042485.
BTL's, residential mortgages, bridging, life cover and estate planning
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
that property is conservatively valued at £700k with no mortgage on the building
been told that as I own the freehold and the three leases it is very difficult to obtain competitive rates via normal lenders
For you to be able to do this you would need to use development finance.
The development finance would be used to complete works and then you could potentially re-mortgage (within lender criteria of course) when the works are completed.
The John Charcol Team
David, if a follow correctly, is this situation a multi unit freehold? If so there are lenders that will consider lending against this.
Sounds like what you want is standard B2L terms on a more complex situation - which as previous posts suggest would need to be considered by a specialist lender.
We would be happy to take a look for.
MBA | CeMAP | CeFA | CertCII
Landlord for 12yrs+