Can I get a mortgage to knock down and rebuild a property that I own outright?

by , 20 Nov 2012

Answers

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You can indeed, can you ellaborate a bit regarding the project . . .

Principaleld Investment Proposals is a independent broker offering impartial advice. Feel free to contact us at piproposals@gmail.com. Your home may be repossessed if you do not keep up repayments on a mortgage or on any other debt secured on it.

I have a holiday let in an amazing cliff top location in Cornwall. The building itself has evolved from an old pre-fab and been blocked around and added onto at various times. It has a large garden of around 1/3 acre that borders the southwest coast path. It was valued around 4 years ago at £500,000.00 primarily due to its unique location. I have a figure in my head of around £200,000.00 to knock it down and rebuild it to a good standard. I have had it looked at by a premier letting agency and they see no reason why it shouldn't rent for up to £3000 per week in the peak season and should gross at least £35000 per year. It currently grosses around £14000 per year.
I run a surfboard business which turned over just over £85000.00 last year but only showed a net profit of around £11000. My wife works as a teaching assistant and earns around £8000.00 per year.
I would envisage the rent gained from the property as a holiday let should be able to more than cover the mortgage.

by ncssurfboards, 20 Nov 2012

Hi thanks for the reply, have you applied for planning permission yet?

Principaleld Investment Proposals is a independent broker offering impartial advice. Feel free to contact us at piproposals@gmail.com. Your home may be repossessed if you do not keep up repayments on a mortgage or on any other debt secured on it.

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