Buying derelict property for rebuild

SmashingPilot

Hi all.
Would anyone be able to tell me what options would I have in relation to buying a property that is currently derelict?
The property has an existing building that I'm not 100% sure of current state (would need to investigate this).

I have a couple questions:

1. Is it even possible to get a mortgage against a property like this? I know you can get self build mortgages but not sure if this would be considered for this case.
2. Can I get a mortgage that would include money for a rebuild?

My idea would be to get the property and either demolish the existing building and rebuild. Or I would renovate the existing building and extend it.

Caranica

The factor you haven't mentioned is planning permission. Don't just assume you can demolish or extend. Talk to the Council before you consider investing.

Brendal

SmashingPilot wrote: »

Hi all.
Would anyone be able to tell me what options would I have in relation to buying a property that is currently derelict?
The property has an existing building that I'm not 100% sure of current state (would need to investigate this).

I have a couple questions:

1. Is it even possible to get a mortgage against a property like this? I know you can get self build mortgages but not sure if this would be considered for this case.
2. Can I get a mortgage that would include money for a rebuild?

My idea would be to get the property and either demolish the existing building and rebuild. Or I would renovate the existing building and extend it.

As a retired financial planner & mortgage broker, yes, it is possible. Best way is to present the deal in following way,

1) Current value price as is, which you should be able to get 920& LTV(Loan to value), would be worth getting it valued yourself by a bank panel valuer, rough cost €200, don't use freebie valuations as they are usually higher to try to attrach sale business.
2) If intended works require Planning Permission, you must have it secured & Grant before applying for loan
3) Have QS/Architect certified cost of works to be carried out, with stages for phased payments based on Architects Certificates
4) Make application in normal way, best through an independant broker (you will need Mortgage Protection policy for full post works loan amount in place before first draw down of funds.
5) Draw down of funds happens in normal way at 90% of the banks valuer's opinion, which will include post works value.
6) Staged drawdown as per Architect's schedule & certs..... That's it, best of luck

Graham

Caranica wrote: »

The factor you haven't mentioned is planning permission. Don't just assume you can demolish or extend.

+1

Don't assume you can rebuild either.

awec

If it's derelict then local needs may apply when it comes to planning.