Hi - I have found a plot but am struggling to find the funds to buy it... We currently have approximately £260k equity in our current house with a pretty small mortgage. The plot is approx. £100k and what we would like to do is to remortgage our current house to release equity to buy the plot (still leaving £160k-ish equity in the property), giving an LTV of around 50%. We would then try and sell our house before beginning construction of the self build - we don't want to start building, then having the stress of hoping our house sells..
My current lender (and several others that I have asked) say they won't consider allowing me to do this. I don't understand why as if I default on the mortgage, they still 'win' and the amount borrowed would still be less than what we borrowed originally to buy the place!
Before starting construction I would sign up for a self build mortgage to cover the later stages of the build. (I would hope to have enough cash left from the sale of our current house to get the new build wind and watertight before needing to draw down on the self build mortgage)
Does anyone know of a lender who would allow equity release to buy a plot?
Thanks.