Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
I’m looking for some advice on how to re-finance 3 properties I have inherited.
My father passed away, leaving me a house and two flats. The lenders are looking for redemption. My only option if I would like to keep these properties with a view to BTL, is to refinance.
The two flats are an old house conversion, held on the same freehold under one mortgage, and the house is under another.
I’m just wondering what my options are? I’m under the impression from brokers that I’ve spoken to that I have everything going against me.
Firstly, lenders don’t like to lend on multi-units, and those that do demand at least a years worth of landlords experience.
I’ve been told my other option is to get short term bridging finance, split the leases, and then refinance. But again I’m reading that lenders do not like to lend on more than a certain percentage of flats in the same block due to over exposure.
Furthermore, I am only 25, and do not already own my own home, my income is under 20k a year, and I gave up work for a long time to care for my father before his death, so had a long period without earning.
My credit history is average. I have a default from 4 years ago, but have never missed a payment since, and am using a small amount of my available credit. No CCJS.
I also inherited all the properties in a pretty poor state, all needing ‘light refurbishment’, which means I will struggle to get a Buy to Let as they are not in a readily lettable condition.
I have spent my spare time when not working doing up the two flats, but my savings are dwindling, having financially supported my father in the year before his death.
Can anyone advise the best way to go about this? I feel like I have been handed a potentially great opportunity, but every avenue seems to be filled with more hurdles.
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