corsa.in.boro
Member
Registered: 30th Aug 02
User status: Offline
|
Is it easy to get a mortgage for a derelict building with no services?
|
Russ
Member
Registered: 14th Mar 04
Location: Armchair
User status: Offline
|
some building are unmortgagable, depening on condition
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
Easy probably isn't the right word.
The level of difficultly would normally include the amount of money the lender can recover if you default and they need to sell it, ie. in this case not much, therefore they either won't lend you much or won't lend you anything.
Some buildings can actually be worth nothing whatsoever, depending on whether it'll actually cost more to knock them down than even the land is worth.
|
Jules S
Premium Member
Registered: 24th Dec 03
User status: Offline
|
quote:
Originally posted by Ian
Easy probably isn't the right word.
The level of difficultly would normally include the amount of money the lender can recover if you default and they need to sell it, ie. in this case not much, therefore they either won't lend you much or won't lend you anything.
Some buildings can actually be worth nothing whatsoever, depending on whether it'll actually cost more to knock them down than even the land is worth.
very true....might be worth it if its an old cottage or something in a rural area...old warehouses or brownfield can cost ££££££ in decontamination costs
|
JadeM
Premium Member
Registered: 9th Feb 06
User status: Offline
|
My mate got refused a mortgage on a property cos it had no plumbed in kitchen!
Was a ex HMP warden house.
|
Mad Moe
Member
Registered: 14th Jun 01
Location: Northumberland
User status: Offline
|
Just out of interest why on earth would you want to mortgage a derelict building?
|
MarkM
Member
Registered: 11th Apr 01
Location: Liverpool
User status: Offline
|
quote:
Originally posted by Mad Moe
Just out of interest why on earth would you want to mortgage a derelict building?
Coz there cheap as chips and im assuming he would want to renovate it...to sell on or live in...
[Edited on 18-06-2007 by MarkM]
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Yes you can pick them up cheap & renovate them to your requirements.
|
Mad Moe
Member
Registered: 14th Jun 01
Location: Northumberland
User status: Offline
|
quote:
Originally posted by MarkM
quote:
Originally posted by Mad Moe
Just out of interest why on earth would you want to mortgage a derelict building?
Coz there cheap as chips and im assuming he would want to renovate it...to sell on or live in...
[Edited on 18-06-2007 by MarkM]
If he was going to renovate it though he wouldn't finance it with a standard mortgage, you'd be looking at developer loans/mortgages and the like. It would also depend on what kind of input you would be willing to put into the scheme. Most development funding is available at 70% of land cost and 100% of build although there are ways of funding 100% of the project cost. However unless the development if going to be very profitable the interest costs often prove prohibitive.
[Edited on 18-06-2007 by Mad Moe]
|
