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Hi does anyone know anywhere I could get funding for the purchase of a semi derelict house which is not ridiculously expensive? It would be around 50% ltv. Thanks in advance!
Cash or bridge finance will be the only way to fund this type of property
There are many bridge lenders in the market but its best to use a good broker to package your deal to the best lender.
Universal Property Services Ltd
Thanks Dan... are you able to recommend a broker maybe? Jane
Might make a JV .Where is the property situated,how much are you paying are you putting in 50% of the price and what do you intend to do with it ?
It's actually a property for my husband and I for after we give up being landlords!... it's in Scotland. Asking price is £175k and we can put in about £80k. I made a mistake with the 50% figure. We would need a bit more than that, maybe 60%? But hopefully not for too long. From what I can gather only part of the property is derelict or semi derelict. The rest is in a bad way, but not too dire. It seems to have a kitchen of sorts... so I'm wondering whether a 'normal' lender might be prepared to lend on it...
You are only likely to obtain short term finance at this stage and as the property is in Scotland your choice of lenders would be very limited.Have you considered increasing your current BTL borrowing ?
Is the property habitable and deemed fit for mortgage purposes in current condition as this will determine your options? If not your options to purchase property will be cash or bridging loan.
Bridging finance is available in Scotland but the number of lenders is reduced considerably compared to England and Wales. However some of the lenders providing funding in Scotland are market leaders regarding bridging interest rates if the proposition is good.
An interesting obstacle to bridging finance in Scotland can be the post code of the property.
When purchasing with bridge finance you MUST ensure you have completed your own financial diligence – for example, purchase price, available deposit, available spend for renovation/ refurbishment, timescale of renovation/ refurbishment, experience of this type of project and/ or experience as a BTL investor and the exit strategy.
Exit strategy will be sale of property or BTL mortgage so it vitally important you do research on the comparable properties in the property area and of the rental demand.
Is there a Homebuyers Report (HBR) available as this would provide a great insight regarding current condition of the property?
Feel free to contact me
Stephen – HD Consultants
T - 01206 577266
E – firstname.lastname@example.org
You can contact me on 07919 564177 or call the team on 01206 654444 for personalised quote and advice or via the website at http://www.hdconsultants.net