mortgage or loan

[westsider]

Hi - My parents (in their 50s) recently inherited a property, house value 150k and land c. 100k The house needs some work done. In total we (they are going to pass this on to me eventually hence my involvement) reckon that 25k to 30k should do a decent job but we don't have that type of money available and would only really have around 10k available for this project. The eventual plan is to have the house as a short-term rental property and that my partner and I would eventually move there permanently further down the road.
We were thinking of boprrowing the difference of 15k -20k.
What should we consider when evaluating mortgages /v/ personal loans (would we even get the latter and would it be suitable in this case???) Can we borrow on a mortgage over say 10 years? Taking my parents age into consideration would this effect our suitability for a mortgage? My partner and I work full-time while my mother works permanent part-time and my father does not work on a full-time basis.
We're not sure which of the two options we should be looking at as this is our first time we venturing into the property investment area!!!
Any advice appreciated.

 

[DonKing]

The first thing I would do is to contact a couple of different estate agents in the area and find out the potental rental income, if the property was done up. The agent may also advise to what extent the property should be done up.

The estate agent should be able to give you a letter estimating potential rent. you should bring this to your bank/building society manager.

I don't think you would have any difficulties getting a mortgage of this scale. You should get a mortgage rather than a personal loan as the mortgage interest can be offset against your rental income when calculating your tax due. You should consider getting a mortgage for the full amount of 25K to 30K particularly if you or your parents have other loans which could be paid off.

 

[westsider]

Thanks for this - we weren't sure if we would need to do up a business plan for the bank and details like this from an estate agent would be ideal for our costings.