Buy to Let Catch-22 SituationMake Text Bigger
I have been attempting to buy a Buy to Let property now for some time now (at least six months) but have hit an impasse.
I and the vendor have agreed a price and I have had a 75% LTV buy-to-let mortgage application approved. However, the property needs renovating – new GCH, kitchen and bathroom in order for it to be rentable and, the loan will not be advanced by my mortgage company until the work is carried out to their satisfaction.
I was initially led to believe by my solicitors (who are also acting for the mortgage co.) we could conditionally exchange contracts, I would then have 6 to 8 weeks to complete the work to so it would be in a rentable state. Once they were happy with the work, the mortgage company would then advance the loan and I would pay the deposit and complete the purchase.
However, I’m now being told by my solicitors this is not something they would recommend, but more importantly, the vendor will not agree to any work being done prior to completion. This of course means my mortgage company will not advance the loan as the works have not been carried out!
My only option according to my solicitor is to make cash purchase but I have not got enough funds.
Any advice would be appreciated.
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