Gifted Site, Need Mortgage.

S

Salmon

Registered User
Messages
106
Hi folks,

Was hoping someone on here could help me out on this issue! I have been gifted a site which is valued at 100-120K. I have recieved full planning permission for a new 2 storey 3200 sq ft house on the site. Hopefully when completed the house will be worth between 400-500K I am looking for a morgage at the moment! I would build the direct labour route and would be looking to make the house 'liveable' for around 250K.

My current salary is 32K with 3K ot earnings and I will be letting out a room. I am three years working in a steady job and am working my way up the pay ladder. I have tried one broker and have been informed that the most I can get is 190k and they wont take the value of the site into consideration. I have spoken to my brother about this and he said when he went for his morgage he used the site as collateral against the loan and he took out around 170k but could have had as much as 300k. He would be earning around the same as me!!

I am looking into contacting the broker he went with but surely all brokers are the same? The will be dealing with the same banks and so should work off the same set of conditions and lending limits.

Can anyone shed some light on this one for me? Has anyone any suggestions as to how I could get approved for the 250k? Has anyone been gifted a site before and had the same problems as me?

Any help would be very much apreciated
 
When brokers or lenders are assessing how much you can borrow the key consideration is how much you can afford to repay and this is based on your income. I reckon your borrowing capacity, with room rental, is circa €200,000.

If a lender advanced you more than you could afford to repay simply based on the value of the site and then they had to repossess the property when you went into arrears they would quite rightly be accused of lending irresponsibly.

Could you not scale back the size of the house? Surely you could build a house for €200,000?

Sarah

www.rea.ie
 
Thanks for the advice Sarah,

I had thought of reducing the size of the house and therefore reducing the morgage I would require, but as I am building the house with the intention of selling it in 5yrs time i reckon a larger house would fetch a higher price! Besides, if I decide in the future to keep the house and live in it I want to build it a little larger so I dont need to build on in the future, economies of scale and all that! I think I am going to proceed with the house as it has been granted on the permission! I will be building the house with my girlfriend and was hoping to get a mortage in my own name, rather than include her on the morgage/deeds of the house at this stage.
My intention was to get a morgage over say 40yr and get interest only for a couple of years to let us get on our feet. Then, if we were to get married it would mean that she would automatically be named on the morgage/deeds. We are both in good jobs and could easily afford a morgage of 250k. Is there anything else that could help my application for mortgage?

Sorry one more question! At the moment I give maths grinds in the evenings, can this be used as income on a morgage application?
 
Is your girlfriend working? If so you could get a joint mortgage to increase your borrowing capacity but you'd need legal/tax advice to protect (both) your interests.

Any additional taxable income can be included in the mortgage calculations - lenders will normally add in 50% of the income from a second job.

Sarah

www.rea.ie
 
My Income from Grinds wouldnt typically be taxed! I would recieve cash from this! Can this still be taken into account?
 
Anyone know if this income can be considered for mortgage application purposes?
 
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