What to do with 120K GBP
Discussion
I find myself in the fortunate position of having 120K hitting my bank account later this week.
We had a couple of ideas of what to do with this money, the first was to buy a property needing some renovation and hopefully sell for a profit, but the 120K is less than I was expecting and I'm not sure if it'll stretch to buying and renovating down south.
Secondly is to put it towards a planned house move later this year, in which case I'd like to do something with it that will both ring-fence it for 3 or 4 months and hopefully give a bit of a return.
On to the questions:
Is it possible / worthwhile to get a small mortgage for renovating a property?
Otherwise what would be a good way to keep this money set aside and to get some kind of profit from this?
Any other ideas?
Cheers!
We had a couple of ideas of what to do with this money, the first was to buy a property needing some renovation and hopefully sell for a profit, but the 120K is less than I was expecting and I'm not sure if it'll stretch to buying and renovating down south.
Secondly is to put it towards a planned house move later this year, in which case I'd like to do something with it that will both ring-fence it for 3 or 4 months and hopefully give a bit of a return.
On to the questions:
Is it possible / worthwhile to get a small mortgage for renovating a property?
Otherwise what would be a good way to keep this money set aside and to get some kind of profit from this?
Any other ideas?
Cheers!
There could be lots of mortgage options available to you, it will depend on your personal situation and also how dilapidated the property your are going to renovate is. Redevelopment/new build mortgages are time consuming and relatively expensive but might not be necessary if the loan is a low % of the value. I am currently arranging finance for a new build for one of my clients.
If you'd like to talk over some ideas off-air feel free to PM me, depending on where in Hants you are you might not be that far from me - sometimes a meeting is more useful.
Alternatives to keep it secure but get a return for a few months? Premium Bonds frankly - but there are limits - sounds like you have an OH, got any children? Each individual can hold £30k.
If you'd like to talk over some ideas off-air feel free to PM me, depending on where in Hants you are you might not be that far from me - sometimes a meeting is more useful.
Alternatives to keep it secure but get a return for a few months? Premium Bonds frankly - but there are limits - sounds like you have an OH, got any children? Each individual can hold £30k.
Thanks for the reply.
I think the maximum amount I would be looking to borrow would be 50K ideally less, giving a 150 budget with 20K for work. That's my thinking but it might be pie in the sky.
It's good to know that the option for a mortgage is there and we don't have to right the idea off. I have my retired Dad lined up to project manage it and he was looking forward to getting his teeth into it. I didn't want to let him down.
Premium bonds could be an option, there's the OH, myself and 2 kids so that would work.
I'm in east hants, right on the surrey/sussex border so about as far from wiltshire as it's possible to be.
Thanks for the offer to PM too, I'll have a chat with the wife and see how she feels about the mortgage option.
I guess I need to start looking at properties and get my nose out of the PH classifeds too!
I think the maximum amount I would be looking to borrow would be 50K ideally less, giving a 150 budget with 20K for work. That's my thinking but it might be pie in the sky.
It's good to know that the option for a mortgage is there and we don't have to right the idea off. I have my retired Dad lined up to project manage it and he was looking forward to getting his teeth into it. I didn't want to let him down.
Premium bonds could be an option, there's the OH, myself and 2 kids so that would work.
I'm in east hants, right on the surrey/sussex border so about as far from wiltshire as it's possible to be.
Thanks for the offer to PM too, I'll have a chat with the wife and see how she feels about the mortgage option.
I guess I need to start looking at properties and get my nose out of the PH classifeds too!
Rude-boy said:
You'll need to have owned the property for 6 months before you can sell it to anyone who might need a mortgage without lenders getting the jitters.
I would speak to an IFA and let them know your timescales.
Either that or stick it all on black.
Missed that amongst all the fantastic offers - thanks for this, useful to know.I would speak to an IFA and let them know your timescales.
Either that or stick it all on black.
Mr Noble said:
Can you explain the issue with flipping a property in the first 6 months please.
Why do the agents get the jitters?
Lenders, not agents.Why do the agents get the jitters?
Money Laundering and Mortgage Fraud sirens go off all over the shop.
See Council of Mortgage Lenders Handbook 5.1.1
http://www.cml.org.uk/cml/handbook/englandandwales...
This is Birmingham Midshires answer, almost all others are in the same vein, certainly with the usual suspects.
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