House buying without a mortgage, dilemma...

[Sam]

Me and my Mrs have been put in a position where we could buy a 5 bed property with out buildings in my village for waaayy under value as it is A. In need of renovation and B. Got turned down for development into flats before the bloke who owns it business went under.

It needs a lot of work but I have been brought up on building sites (even though I no longer work for my dads firm I still dabble) and her parents are Architects so we fully understand what is needed. We can get hold of the money though a mix of business and family loan to make the full amount, or at least an offer an amount.

Why not take out a mortgage? Well, this is the catch... I'm a student for another 9 months and thus completely un-mortgagable. I have a post graduate job lined up and my Mrs has just set up a business (which is already employing 3 people) so the idea is to pay interest on the loan for 2 years whilst living in and doing up the property and then take out a mortgage to buy buy it at its current value plus fees off our parents/pay off the bank loan.

The property has a shop frontage (no overheads for my Mrs business, she is renting a unit at the moment) and whilst in final year, my time will be far more flexible than it ever will be in my life again, so it all seems to slot into place, kinda.

If you were a 23 y.o. with your partner of 8 years (we have been living together for a while now too before you ask), what would you do? Jump in or bad decision. 

[Jack3559]

Sounds incredible.

If you know you can afford it, you should do it. A similar opportunity might not come around again.

[Thom89]

Sam, in all honesty, i'd steer well clear, however tempting, of any commercial property at the moment, you can't give them away! As an example, my wifes uncle had a shop in Leicester near the Racecourse, prime location for a furniture shop... read exclusive. 6 years ago. it was valued at over 600k give or take, the property then sold for 240kish one year ago, the buyer has just resold the property, and took a 20k hit on it! he thought he was being smart!  Now the property is being converted into a home

I'm all for enterprise, but sadly now is not the time, commercial properties have NO value at the moment, only what someone is willing to pay.
Hold tight for a couple of years, get a mortgage, and rip through a project that you can both handle, given the help that you have around you, sell it and move on to something bigger and better, do this 4 or 5 times over the next 10 years, and you'll be sitting pretty!

Thom

[Sam]

Sam, in all honesty, i'd steer well clear, however tempting, of any commercial property at the moment, you can't give them away! As an example, my wifes uncle had a shop in Leicester near the Racecourse, prime location for a furniture shop... read exclusive. 6 years ago. it was valued at over 600k give or take, the property then sold for 240kish one year ago, the buyer has just resold the property, and took a 20k hit on it! he thought he was being smart!  Now the property is being converted into a home

I'm all for enterprise, but sadly now is not the time, commercial properties have NO value at the moment, only what someone is willing to pay.
Hold tight for a couple of years, get a mortgage, and rip through a project that you can both handle, given the help that you have around you, sell it and move on to something bigger and better, do this 4 or 5 times over the next 10 years, and you'll be sitting pretty!

Thom

It's a residential property with a small shop frontage Tom that we would convert to live work for both the shop and studio space out the back, it has separate access to the shop and to the house so could be seperated. It comes with parking for 5 cars, a double height brick slaughter house with 2 stables/livestock  pens and numerous out houses along with a south facing garden. So it's not a bad gig

[VW BUSH]

As Thom says commercial property is very cheap if you cant get planning permission for it.
If your going to run a business there then that makes some sense but then you have a home and a business that need renovation to function.  All that said if you can make it work then it's a few rungs on the ladder in one hit.
I would look at why planning was refused and what it would take to get it, a sizeable plot with planning could be flicked on for good profit.

[Diamond Hell]

It sounds like it's actually ideal for your requirements (and potentially ideal for a long time).

Planning could be turned down for change of use for many reasons - change of use is always contentious.

If it suits you as it is AND it's properly cheap AND there aren't any major structural issues I'd get in there, subject to understanding the cash requirement to renovate it to the point you can live in it.

If you're looking at it as an investment for re-sale - don't do it.

[danny_p]

IMO   with property / land    as long as you buy it right your hard pushed / stupid to losse out as long as funny money isn't involved.

[kittie]

I'm confused as to what the dilemma is here. If I was a bloody lucky son of a b!tch like you, I know what I'd be doing (subject to checking out planning first, naturally).

I bought my house at 22 with my partner of two years at the time, we'd lived together 6 months. That was around 5 years ago, don't regret it, wouldn't have been able to buy anywhere at all on my own so...

[Sam]

Got trumped by a cash buyer as the bank took too long deciding on the business loan at out end.  hopefully it all falls through 

[Bellend]

I've been accepted for a 170k mortgage which I was shocked at. A friend told me that you can do it after 3 months wage slips if you have a limited company.

Just a deposit and whether I wanna do that or rent....