Non-standard construction loans/mortgages

krizon

krizon

At the Start
Joined
May 2, 2003
Messages
16,263
Location
Dahn sarf
Does anyone on here have any positive experience of transferring a standard loan/mortgage on a brick-build property towards a non-standard construction one, please?

Northern Rock doesn't seem interested in portaging my current small loan towards the future domicile (the log cabin by the lake) and I'd prefer to keep more money in the bank for as long as I can, as against pay the lump off and not have another deal in place. I've pulled up some companies which do offer such deals, but I have no idea which might be better than others, so anyone with some experience in this line, giving me a little advice, would be appreciated.

My solicitor's remark that companies don't offer loans against non-standard builds seems nonsense - there are endless lists of constructors producing non-standard homes and other properties which companies lend against.
 
Thanks very much, Soary. I very stupidly took out an 'equity release' scheme some years back with Northern Rock - you know, all those ads showing sweet old grannies smiling at the thought of a bit of extra dosh for 'that holiday you always dreamt of', et cetera. When I went to sign the documentation, I noticed it was called a 'second mortgage', which I said was a bit weird as I'd never had one (I'd always bought for cash). Not to worry, said Northern Rock, it was just a formality - they weren't actually 'allowed' to promote equity releases any more. To which I replied that in that case, why were they still being advertised? (No useful reply.)

The fact is, 'equity release' is no such thing - you don't get a lump of dosh which you repay until you die. If you go to sell your home, you find out, as I've just done, that it really is a mortgage, and has to be repaid or portaged forward to the next 'similar' property. I don't want another standard build at present, as I've got this lovely lakeside log cabin all lined up at a bargain price! But no, N Rock doesn't want my business for this, it doesn't want to merely and simply transfer the balance over - it wants all the money back as soon as I've sold.

So there's a warning for anyone's gramps who might be eyeing up buying a Bentley or sailing away for three months on the basis of 'equity release' - it's just a way to squeeze mortgages out of people who are generally a little too old to get the usual ones. With all the problem of repayments if they ever have to downsize, go into care, etc.

Anyway, looks like I can still get a rational company to take it on and carry it over. Did I say that a little row boat comes with the deal? And about a dozen beautiful lakes full of fishable carp, as well as swans and other water birdies?

I just need this buyer to be genuine, unlike the previous two, where we got to contract and they revealed themselves as spoofers.
 
Hope this works out for you Kri. We looked into equity release for parents and it was not all it appeared, as you say.

There are some 'green' lenders who are willing to lend for unusual properties and to any age group. A friend of ours got some kind of mortgage for life based upon his pension.
 
Given that you new gaff is made of logs, you may be required to pay premium interest rates if there are big bad wolves in the area.
 
I'll - oink, oink - take oink board what - squeal, squeal - you say, Relks. :D

Am going to pay outright for the lodge (log cabin), while Black Horse has offered 12.3% over seven years on the new mobile home (aka static caravan). My cousin's husband is now chewing over whether he wants to improve on that lending, but my cunning plan is to renovate the cabin to a smarter standard, flog it off at profit or rent it out for very high returns, as there's no other rentable one lakeside there, then pay off the loan and see what else can be bought.

It'll probably end with me being carted off to Bedlam, which does have the benefit of nice soft mattresses, I believe.
 
Back
Top