We are planning to acquire prime London property, redevelop it (various ways to signifcantly increase the square meterage, thereby increasing the potential selling price, and selling off ASAP after completion. We however need close to 100% finance for both the purchase of the property and the development costs (based on surveyors measurements). So far no luck whatsoever. Any ideas? please help!
2006-09-22 18:23:54 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
http://www.liba.org.uk/
The reason you have had no luck is that you want too much from the banks with no or too little capital investment of your own.
The high street bankers will normally go 50-50 with customers they have known for some time.
You made need to use equity from any existing properties you have as security.
To be honest i think you are on a hiding to nothing.
Your other options are to find investment groups but again you need some track record
2006-09-22 19:08:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Your best bet is to buy a run down property in an auction, but have a mortgage in place before you purchase. I doubt you will get more than 80% mortgage though, so you will need some capital to start a venture such as this. View the property before the auction to assess that it is viable financially , especially if there may be subsidence. Extra costs like this, could be totally counter productive. Make sure that you can do at least most of the necessary work yourself as labour costs and unreliability from some builders can also be counter productive. Check with the local council in the area where you are going to buy , what grants are available, these used to be the same throughout but 3 years ago they changed the law and now it is up each individual council as to what they are prepared to grant and under what circumstances. So try if you can, to buy where appropriate grants are available. If you are putting on an extension, then you will need planning permisssion, so shop around now to compare prices of architects who will draw up the plan and submit it to Building Regulations. Good luck.
2006-09-22 20:22:43 · answer #2 · answered by coolbythepool23# 2 · 1⤊ 0⤋
If it was that easy we would all be doing it! Unfortunately most lenders require some security.........I can't think of any lender who would lend nearly 100% and finance 100% of the renovations. Very risky and wouldn't make financial sense. Good luck anyway!
2006-09-26 03:51:39 · answer #3 · answered by shirley p 2 · 0⤊ 0⤋