Suggestions please...

Guys & Gals,

Here's the situation... I have started to build my own house.. I purchased the half the site from a neighbour and am purchasing the remainder from my father shortly.. I have the builders in ... and have the house at roof level.. I'm running out funds and want to get a mortgage to finish it.

Any mortgage lender/broker needs me to get a 6 point letterhead from my site engineer before I can proceed with the mortgage application..

Is there any way I can get a mortgage/loan for around €140k using the deeds for the site alone.. The site would easily be worth that. My solicitor has told me already that he is quite prepared to compile a letter stating that the site is marketable and in my name.

Anyone got any suggestions ?
dudeman

Little bit of difficulty understanding this...

You're building a house on a site you don't have title to. Where exactly would the security be for the lender? They could end up with a house (or part of one) on a plot of land owned by somebody else.

The owner of the land is prepared to sign a declaration that the plot is yours.

That's all very well but by the sound of of it half of it is actually his.

Mortgage providers are a bit old fashioned - they tend to insist on things like clear title.

I daren't even ask about planning permission.

I purchased half the site from my neighbour. I own the title to this piece. The other piece of land belongs to my father. I can have that transferred into my name at any time. Therefore I will have title to when I need it.

I already have permission.

You shoudl go ahead and get title on the piece of land form your Father first before using the land as collatoral towards the loan. If it can be done at any time why wait?

This doesn't answer my original question.. Is there a lending institute willing to loan me 140k at a competitive rate (3 / 3.5) using purely the deeds of the land.. so I can forgoe the need for an engineer ?

Hi dudeman

a 6 point letter from your engineer will be a lenders requirement as lenders issue mortgages against a dwelling on a site, not just the site itself

while lenders like ACC & ICC did offer finance for sites and land years ago it is becoming a thing of the past


regards
Deirdre Leonard
leonard@rea.ie