Who will lend on a property with no bathroom?

by Readers Question

12:00 PM, 30th September 2013
About 5 years ago

Who will lend on a property with no bathroom?

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Who will lend on a property with no bathroom?

I’ve got my heart set on a property going to auction, which has no bathroom.

I can get a mortgage to easily cover the cost of the property. But the problem being, it’s got no bathroom.

Went to Lloyds, and delved into what their surveyors will pass an approval on, and basically saved £300 on a survey, by finding out prior to ordering a survey, that they won’t pass a mortgage unless it has a kitchen, and bathroom (in no matter what condition though).

Would someone be kind enough to enlighten me as to what products are out there, that would lend on such a property?

I believe The Mortgage Works have just pulled a product which would have covered this? Who will lend on a property with no bathroom

Cheers

David



Comments

Mark Alexander

12:03 PM, 30th September 2013
About 5 years ago

Hi David

We recently featured an article on the Precise Mortgages bridge to let product - see >>> http://www.property118.com/light-refurb-alternative-bridge-to-let/42037/

There may be other options though so I recommend you to seek professional advice - please see >>> http://www.property118.com/member/?id=314
.

Lynne Davis

12:51 PM, 30th September 2013
About 5 years ago

There's always the option of bridging, if your finances will stretch to that, and then getting a mortgage once you've got the necessary facilities in place.

When you get to that stage, I understand that Virgin will allow a remortgage within 6 months IF you've done significant work to the property, and will value it based on purchase price + evidenced cost of works, so that should reduce your LTV and might get you a better rate as a result - it might even be worth paying bridging rates for 3-4 months to get a better long-term interest rate.

Mark Alexander

13:14 PM, 30th September 2013
About 5 years ago

Further thought.

Maybe your broker could arrange a mortgage offer and negotiate a 100% retention with the lender, pending installation of a bathroom?

You could then use bridging finance as per Lynne's suggestion.
.

Matthew Dickinson

13:26 PM, 30th September 2013
About 5 years ago

Now understand I am no expert, but having bought houses in the past in sorry states of repair, I would see if an interest only mortgage can be obtained, as I never had problems getting one of those, and then, once a bathroom is fitted a different sort of mortgage can be applied for Interest only mortgages appear to be a lot easier to obtain.

Howard Reuben CeMap CeRER

13:42 PM, 30th September 2013
About 5 years ago

Reply to the comment left by "Lynne Davis" at "30/09/2013 - 12:51":

Good suggestion Lynn. I can also advise that even though VM is one (of a very small handful of 'traditional' lenders) that may say yes (subject to min £25k income, credit status, etc) that there are a number of specialist lenders / banks (David, please note - usually only available via Brokers) that will also consider this.

See case studies 3 and 4 at this link for just a couple of examples of what we can achieve;

http://www.hdconsultants.net/case-studies/

Howard.

16:28 PM, 30th September 2013
About 5 years ago

Reply to the comment left by "Howard Reuben" at "30/09/2013 - 13:42":

Hi Howard,

Is this your company? Do you want to give me a call?

07969850601

Cheers,
David

Howard Reuben CeMap CeRER

17:01 PM, 30th September 2013
About 5 years ago

Reply to the comment left by "Matthew Dickinson" at "30/09/2013 - 13:26":

Matthew, what do you mean by "I would see if an interest only mortgage can be obtained"?

An 'interest only' repayment strategy can apply to BTL mortgages, loans, bridging finance, commercial mortgages, etc.,. It is not the repayment style that is the issue, it's whether a lender would lend in the first place on a property that is deemed 'uninhabitable'.

Post-works, and at this point we now assume it is habitable, it doesn't matter whether it's on an interest only basis, or a full repayment basis (that's a personal and / or tax strategy decision), the mortgage lender will still need to assess the borrower and the property as usual anyway.

And finally, as I always say, full whole of market research via a professional mortgage broker Firm is strongly recommended.

Mark Alexander

17:05 PM, 30th September 2013
About 5 years ago

Reply to the comment left by "David Price" at "30/09/2013 - 16:28":

Hi David

Just to be clear, Howard is not an owner in Property118. He is, however, an owner in HD Consultants. The two are only related by virtue of the fact that they recommend each other.


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