Mortgage for an Unmortgageable Property

[R11ysf]

Does anyone know of any financial providers who can lend on a residential property that is currently a shell?

Long story short the vendor bought it as a house and stripped it to a shell. They now want to sell it but it won't qualify for a residential mortgage as it has no kitchen, bathrooms, heating etc etc.

With a mortgage I can afford to buy it and have the work done, but unfortunately I don't have the cash available to buy the whole thing for cash and then have the work done and then the mortgage approved after the works.

Has anyone got any suggestions please? If it means anything the numbers involved are quite large so I don't know if this makes things harder.

[R11ysf]

Eleven said:

Commercial / development finance from a bank?

They'll need to be confident you know what you're doing, you'll need to have plenty of skin in the deal, pay meaty interest and they'll want security in addition to the shell unless the loan to value is a fraction of the value the property is worth on the open market.

Or you might find a private investor willing to do it, but they'll want even more than the bank.

Thanks, a bank loan isn't really an option. I was more thinking are there any development mortgage products out there whereby your borrow on development finance (c. 1% a month or whatever it is) then the moment they are satisfied it meets the criteria of a residential mortgage it flips over.

[R11ysf]

Thanks that's the sort of thing I'm thinking of. Any idea of any actual companies that do this? I'm going to have seven figures in it so it's not a problem of them getting their money, it's more a cash flow/timing issue.