Renovation Mortgages

I’ve got an opportunity to buy a fixer-upper. Not habitable, potentially not mortgageable, buyer won’t entertain a chain, would prefer a outright cash buyer (unicorn in the circumstances). I can raise enough equity from my current property to cover a mortgage deposit, stamp and minimum viable renovations.  Sticking point is convincing the seller that I’ll be able to get a mortgage on it.

Anyone used a renovation mortgage? Bridge loan is very expensive.

Will there be a second home tax to consider as well?

Might add a fair bit if so

Can you just get a loan? However..

Are you sure its unmorgatable?

I bought a repossession about 15 years ago, the previous owners had completely stripped everything out before leaving. From memory the only thing that was required to be able to get a mortgage on it was it had to have a usable kitchen sink.

You can sleep and eat in the toilet, its perfectly acceptable. Don’t believe what they said at school

Will there be a second home taxed to consider as well?

Yes there will I’d imagine.

OP I hope you’ve done your sums properly…. Take what you reckon it’s going to cost and multiply by around 2.5 to get the inevitable final renovation costs!

Take what you reckon it’s going to cost and multiply by around 2.5 to get the inevitable final renovation costs!

Go and check out the grand designs thread and don’t invite Kevin round unless you want an unexpected pregnancy mid development

What makes you think it’s not mortgageable? Is it non-standard construction or just a ruin?

A higher bid got it a couple of months ago, but then failed to get a mortgage. It’s been broken into and missing some pipework, water not on, no cooker. No opportunity to fix a few bits as seller is a bit odd, if he did fix it he’d open up a significantly bigger market as it’s pretty unique for the village and would be desirable. However, it’s too expensive for developers to knock down and build 4 or 5 houses profitably.

Renovations are not planned to be on a grand designs scale, some general deforestation, move the kitchen to the back, 2 sets of bifold, heating and electric, 2 bathrooms and redecorate.

I’ve done my sums, new second home rate impacts cashflow and forces sale of first home within 3 years. I’ve put my max bid in, with contingency. Bridging loan not cost effective.

I really need to be able to convince the seller I can get a mortgage, broker seems happy, but looking for people’s experience with renovation mortgages specifically.