Large equity but low income

Hi, just looking for advice on an unusual situation and chances of getting a mortgage.

A few years ago I inherited a large farmhouse in poor condition on a few acres in a good location close to Dublin. I did a basic renovation to make it habitable but it still needs a good bit of work.

Its been valued at approx 600k as is. There is no mortgage on it.

I am looking to spend €250k to renovate and extend. I have €100k capital and need to borrow €150k. Repayments on €150 @ 4.5% over 20 years are €950 per month.

The house should comfortably be worth €850k+ post works.

The finished works would include a two bedroom flat, connected to the main building but self contained. The market rent of this is €1250. On completion my father wishes to rent it at that rate.

My problem is my income is very low - fluctuates between €15k-20k (self employed creative!) So looking at LTI limits I'm way off, and its not really a BTL mortgage.

Realistically do I have any chance to borrow the 150k? Any ideas?

I don't think you do, ability to repay is the number one criteria for lending, equity comes in second. Bank wants to make money not end up selling home so you have to fit the lending criteria and with 20k income you won't for a mortgage of 150k.

Is it feasible to sell some or lease the few acres to increase your available capital?.

I note also that you inherited the house but your father wants to rent it. Who actually owns and controls the property?

Hi spanners

The bigger question for you is whether you can afford the upkeep of a large farmhouse on €20k a year.

The reality is that you can't. You will have high maintenance costs and high LPT.

You should sell the house and buy a low maintenance house you can afford.

Brendan