How to borrow 45,000 from a bank for a house without getting a mortgage?

[galwayhous]

My spouse and I (both working) have 455,000 in savings. No loans.

We are in direct negotiations with the owner of a house we like. The owner is willing to sell us the house for 500,000 as long as we can come up with the cash quickly.

For this reason, as well as the unliklihood of our being able to get a mortgage (the house we wish to buy has a slight non-compliance with planning which would make it a very long process to get a mortgage on it), we wish to borrow 45,000 from the bank by means of another type of loan.

For instance, my spouse's old car might need replacing... Perhaps spouse could get a loan of 30,000 for that?

Perhaps I might wish to do some home improvements on an elderly relative's house.... I might get a loan of 15,000 for that?

We have already got excellent legal advice re purchasing this house and, once a way forward has been found and an agreement re price reached, will make any offer subject to the usual caveats (engineer being happy, etc).

We both have excellent savings records with our banks and have both joint and separate accounts.

Any suggestions as to how we might seal the deal?

 

[monagt]

slight non-compliance with planning

and you are going to hand over €1/2M in cash!

We both have excellent savings records with our banks and have both joint and separate accounts.

and can't get a loan!

Is this serious?

 

[Knuttell]

and you are going to hand over €1/2M in cash!



and can't get a loan!

Is this serious?

They wont get a mortgage because of slight planning irregularity.

OP cant see a major problem with you getting a couple of car loans.

 

[Wishes]

Keep your money OP!

 

[Bronte]

If you apply for a car loan they might want to make the cheque payable to the garage. You need to apply for something wherein you'll get the cheque yourself.

I presume you've taken good legal advice on the planning issue. You realise that if you cannot regularise the situation that if you ever plan to sell you too will have to find a cash buyer.

Why the hurry? Seller will find it difficult to find a buyer with a planning issue and I wouldn't imagine that there are many other people out there with nearly 1/2 million in cash who would compete with you and get the house. So seller cannot dictate a speedy sale.

What exactly is the small planning issue?

 

[DrMoriarty]

OP, I presume this isn't the half-finished house you were looking at two years ago? That struck me as a potential minefield, to use onq's expression; this seems more akin to a confirmed one. You want to part with a half a million in cash for a house that can't ever be mortgaged/resold (except to another cash buyer), with planning "issues" that may end up costing you even more money later on ...and your legal advisor is encouraging you to go for this?

On the face of it, and without knowing the full details, I would have to query the "excellence" of that advice...

 

[galwayhous]

No. We moved on from the unfinished house project, thanks in no small part due to the excellent advice we got here, especially from ONQ.

Half a million is a huge amount of money, but it wouldn't go far on a house in some areas, such as D4.

Not even today, alas.

Thanks for the advice. I'm listening, I'm listening!

 

[Bronte]

. I'm listening, I'm listening!

But you're not telling us what the planning issue is, which is kinda important !

It's good to know that ONG advice stopped you making a mistake, he used to do great posts on planning issues.