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  • Mortgages & Finance

    Studio Flat Less Than 30sqm Mortgage

    Hi,

    I own a studio flat i purchased for cash a few years ago and been renting it out ever since without any issues. I think its worth approx £85k (had couple of agents check they say between £85-90k) We are looking to remortgage to get some money out for other projects, obviously the market for studio flats is very limited and even more so less than 30sqm (our one is 23sqm) anyone have any experience or guidance they could give?

    Thanks in advance

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    Hiya. You will be limited by lenders because the space is soo small but best to check with your broker. 

    In my experience with a friend who has a very small studio....Birmingham Midshires is a lender who does mortgages for small studios.

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    Hi there

    Thanks for your reply, i will contact broker to get some ideas. We have commited to a project which i dont think will be able to get cash out of for a while so looking to release funds elsewhere hopefully this will be a option.

    Stuart

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    We have been able to get a mortgage three flats smaller than yours both as remortgages and purchases although they are in London which might make a difference. Our lenders have been Santander and Birmingham Midshires. One is nearing completion right now so this is still viable.

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    Studio flats less than 30m2 are a problem for a majority of lenders, but as with every situation, in order to get the best possible outcome, you need to speak to a broker and not just go with a lender because you know they will allow a certain situation.

    Some lenders will allow small studios, but will be guided by the valuers comments.  If it is in a desirable location, for example, it is more than likely that they the valuer will take a more positive view of the situation.  Remember, a lender will want to know that they can get their money back on a forced sale if they have to.  Trying to offload a tiny studio with limited appeal in a poor area could lead to them losing out on a repossession.

    If you are in this situation, why not give specialist BTL brokers HD Consultants a call.  01206 654444.

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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


    Hi All

    We are think to remortgage ours studio.
    Is 22sq meters,longs leashold,own parking,back patio.
    Located in Harrow/London
    300m from tube station
    Bought cash 6months ago
    Value be estate agent £180
    My opinion £160k

    Anyway...who would lend on such small area?
    Is it BM Solution best one to ask?
    Also BM dont require minimum size and no min personal income.
    Any other high street lenders may consider this flat?,remortgage up to 60% LTV and market rates up to 2.3% fixed for 5years
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