X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Mortgages & Finance

    Mortgage Problem

    We are in the process of purchasing a BTL property for £63,500. The problem is that the vendor has only owned it for about a month and he paid £48,500. Some lenders have a problem with with the time that the vendor has owned it and others have a minimum £75,000 price criteria. I am wondering if bridging would be the answer or if Shawbrook have a product that might suit. Any advice would be much appreciated.

    0
    0

    I'd have a problem with that.

    What has he done to justify the increase in value?

    0
    0

    Not heard of £75k minimum  price criteria... £40k-£50k in my experience

    0
    0

    Hi Glenn,

    You need to find a lender who will consider this.

    If there is no documentary evidence to support an uplift in price, I fear you may struggle.

    Virgin is one lender who may consider it.

    You really need to speak to a broker, who will know which lenders to approach on your behalf.  Property Tribes Financial Services on 01206 654444 would be pleased to assist.

    Whichever lender you use will value it at the market value, or the purchase price, whichever is the LOWER.   The worst case scenario is that it will value around the £50K mark, which might mean a cash purchase.  

    Time to speak to a reputable broker and get the correct advice. Smile

    0
    0

    Did the vendor buy the property under the market price (i.e. Can they for example demonstrate that they bough for cash from distressed seller and hence got it for less than value)? If the flat was genuinly valued at that price just a few months ago, then you will have an issue with valuation whether it's for bridging loan or normal mortgage. (*Moderator note: Content removed*).

    0
    0