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About AdamB

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  1. Can you give any steer on what level of mortgage you were offered? Was it a specific multiple of your combined income? Had you gone as far as costing your project at this point?
  2. Yes, any shift in rates & build costs could certainly have an impact. I'm just trying to see if there is any structure possible, given the opportunity and knowing the seller. Ultimately, if I cant afford it, then I'll have to pass. 🙁
  3. Hi - thanks for the note. The subject site (2 acres) is currently part of the sellers garden (he owns 6 acres in total). The excess 2 acres that they have is currently fenced off and has a few sheep on it keeping the grass down. Interesting point you make around it's current use and potential tax implications. Does a seller have to pay different tax amounts when selling for garden land, compared to argi land?
  4. Hi - thanks for the note. In short, he doesn't the cash ASAP. Hence, he may be prepared to structure some sort of timeframe that would be more preferable to me (assuming there is anyway I could fund this ) Having said that, I certainly wouldn't propose paying him over X amount of years. Ideally, he would somehow receive full funds upon practical completion...
  5. Sorry - typo in the heading. It should read - Is this financing structure possible?
  6. Hi all, Are there any finance people out there? If so, I would very much welcome your thoughts on the below please. My godfather has a parcel of land that he is looking to sell. Whilst he is looking to maximise value, he would be open to structuring a deal that could maybe allow myself (& my young family) to potentially purchase it. It's a great piece of land. The land is valued at £400,000 Build Costs would total circa £350,000- £425,000 Properties in the area for a similar house are in the region of £1.3m - £1.5m Our combined income is £85k. I know that we cannot afford to purchase the land. However, given our relationship with the seller, is the below proposal (from a finance point of view) possible. I purchase (STP) the land at, say £100,000 cash (savings). We get a self build mortgage for £350,000. We complete the self build and then re-finance at say £1.3m We remortgage on an interest only mortgage at £450,000, which is at a level we could afford. (£350,000 (from the self build mortgage) + £100,000 (in equity to be paid to the seller). The seller would have therefore received £200,000 (of the £400,000) Is there potential to then take out a secured loan for the remaining £200,000 against the equity we would have in the new home (circa £850,000) If so, we can then use that loan to pay off the final £200,000. We would therefore be left with: Interest only mortgage on £450,000 (c30% LTV) paying say c£500pm Secured loan of £200,000 paying c£1,750pm+ Equity in the new house at c£850,000 Many thanks in advance,