Trying to buy a site - money problem!

D

Dr.Phil

Registered User
Messages
36
Hi just wonder if anyone has any ideas on the following: -

Myself and boyfriend last year were getting a site from his cousin at very reasonable price – we tried for planning and were refused. The plan was to keep trying for the planning permission and had a Councillor working for us and expected to eventually get planning. In March we decided to buy a house while we waited. Then his cousin decided he wouldn’t sell us the site. So now we are living in a 3 bed semi in an estate that we really don’t want to be in.


A site in our area has come up for sale for €135k with planning and we really want to make an offer but we haven’t got a penny. Ideally we would rent out our house and live on a mobile on site. We went to a broker who thought we should be able to get 80% of the site value. But this leaves 20% plus stamp duty which we can't come up with.



Is there anything we can do – we can’t sell the house because we would loose money on it. We expect the value to go up in the next two years as the new motorway which is near us should be ready.

Is there anyway around this predicament?


Our gross income is about 60K and our mortgage is 200K. Should we just wait and try to save?

Any tips would be greatly appreaciated.
 
What is the value of your existing home? Is there any way that you could top up your mortgage for the 20% deposit fo the site? I know its not an ideal situation but its an option
 
no we couldn't remortgage - we only bought the house in March so it hasn't increased in value yet!
 
Will you have to borrow to build the house?
Can you offer them 80% of the site value initially, get a mortgage to build which includes the 20% extra you need and in the mean time get the remainder from your local credit union.
Your solicitor could give a letter of undertaking to the Credit Union saying you will repay the amount due when your mortgage comes through for building the house.
 
You would have to be careful how you would present the case to the lender. Usually the max mortgage available on a self-build is 80% of the site value + 100% of the cast to build. I doubt the bank would lend 80% of the purchase price if the site, the full cost to build and then an additional €27k, this would be 100% of the total cost of the house and lenders don't offer 100% mortgages on self builds.

You could borrow the 20% deposit for the site as Bahman recommended but if possible borrow it from a family member or a CU not in the ICB. Then you could easily add an extra 27K onto the cost of building the house to then repay this loan.
 
You must log in or register to reply here.
Back
Top