Mortgage Advice - First Time Buyer
Discussion
Hello all, my first post in the finance section after lots of reading of threads!
I need some advice if anybody would be so kind. I am currently looking at purchasing my first house and I have a few questions regarding mortgages. I've tried to do some research both on the price comparison websites and on here but I can't seem to find the answer to my question.
The house I have seen is on the market for £125,000 BUT the agent has said that offers over £100,000 would be seriously considered and probably accepted. Now, the house needs about £20,000 spending on it to modernise it and make it they way I'd like. I see it as a live in project. Once completed it would be worth close to £150,000 (going off other houses on the same street.
The reason that the agent is so open to offers is because the house was owned by an old lady who has left everything to the local church. Obviously the church won't give it away but they would like sensible money for it.
Could I get a mortgage for the £125k if I were to get the house for £105k and spend the 20k on the improvements that I'd like to make? Or is the mortgage strictly restricted to the price that I agree to? Then I'd have to go about finding the money from elsewhere to make the improvements which would probably be difficult.
Obviously a project might seem a bit silly for a first house but it seems the only way I can move up the property ladder with house prices stagnant as they are. I'd effectively like to be in the position of having a house worth £150k having a mortgage worth £125k and then being able to make the next step up which, if my figures are correct then it seems a positive way of making some money out of it as well as it being my home.
Also if it is my main residence for over a year I wouldn't pay an capital gains tax would I?
I'd be grateful for any advice and to hear of anyone who has done anything similar and how they dealt with it?
Thank You
James
I need some advice if anybody would be so kind. I am currently looking at purchasing my first house and I have a few questions regarding mortgages. I've tried to do some research both on the price comparison websites and on here but I can't seem to find the answer to my question.
The house I have seen is on the market for £125,000 BUT the agent has said that offers over £100,000 would be seriously considered and probably accepted. Now, the house needs about £20,000 spending on it to modernise it and make it they way I'd like. I see it as a live in project. Once completed it would be worth close to £150,000 (going off other houses on the same street.
The reason that the agent is so open to offers is because the house was owned by an old lady who has left everything to the local church. Obviously the church won't give it away but they would like sensible money for it.
Could I get a mortgage for the £125k if I were to get the house for £105k and spend the 20k on the improvements that I'd like to make? Or is the mortgage strictly restricted to the price that I agree to? Then I'd have to go about finding the money from elsewhere to make the improvements which would probably be difficult.
Obviously a project might seem a bit silly for a first house but it seems the only way I can move up the property ladder with house prices stagnant as they are. I'd effectively like to be in the position of having a house worth £150k having a mortgage worth £125k and then being able to make the next step up which, if my figures are correct then it seems a positive way of making some money out of it as well as it being my home.
Also if it is my main residence for over a year I wouldn't pay an capital gains tax would I?
I'd be grateful for any advice and to hear of anyone who has done anything similar and how they dealt with it?
Thank You
James
You are about 5 year to late for the Northern Rock 120% mortgage scheme !!
No, maximum mortgage would 95% of purchase price but this would depend on the condition of the property. If it requires major updating the lender will restrict the amount they will lend (or not release all the mortgage monies until certain work has been done on the property).
A good idea but difficult to finance at the present time.
No, maximum mortgage would 95% of purchase price but this would depend on the condition of the property. If it requires major updating the lender will restrict the amount they will lend (or not release all the mortgage monies until certain work has been done on the property).
A good idea but difficult to finance at the present time.
Mortgage may not even be to the amount you agree it will be the price their valuer agrees so even if you offer £100k and its accepted the valuer may turn around and say actually its only worth £95k and you will have to up your deposit.
Nothing wrong with a project for your first house buy I remember back in the day living in mine no carpets on the floor, no bath for a couple of weeks no central heating etc... a great achievement once its complete!
Nothing wrong with a project for your first house buy I remember back in the day living in mine no carpets on the floor, no bath for a couple of weeks no central heating etc... a great achievement once its complete!
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