Best way to get €40k - advice needed

K

Kateb

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Hi all

Just looking for some advice. We live in Dublin and have a 240k mortgage on our house. We are moving down the country in March 2008 and building our own house.

However we would prefer to start the new house as soon as possible and at least have the foundations in before March. It will cost approx 40k to do this.

We intend to put our house in Dublin on the market the first week in January and hopefully it will be sold by March for c.330K. So should we look for an extra 40k on our present mortgage to put the foundations in or should we get a new mortgage out on the strength of our site and pay interest only until we sell our dublin house? Once we have our own house sold we will apply for a new mortgage to build the house with.

Any views greatly appreciated!

K.
 
A lot of people are finding it difficult to sell their house with plenty of houses on the market for sale for over a year. In the current market I would advise you to sell your own house first and then use some of the cash from your house towards the new house. You might be lucky and sell your housily easily for above what you are expecting, however, it's likely you won't get as much as you want. If you take out the 40k mortgage or increase your existing mortgage by 40k you are going to start feeling the pressure when your house is on the market and you're not getting any offers in.
 
Kateb said:
Hi all

It will cost approx 40k to do this.

Any views greatly appreciated!

K.
Click to expand...

Get a second mortgage from the bank for the new property. I have recently done this and taken out e40k from our possible draw down of e100k (paying interest only for now as still have main mortgage). It is costing less than 140 p.m. As long as the LTV is less than 80% you are fine - need to get a valuation on the site from local auctioneer. Don't put on the existing mortgage- it'll die when you sell the property. Piggy back mortgages - i.e. slide the other up to 100k and change to capital repayment at 14 years & first dead (want to kill the mortgage within the same terms as existing). Very simple...Pm me for advise.
 
If you wait until you sell your place you might get the work done for less than 40k as more builders find themselves at a loose end.
 
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