right stuff
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That property is already secured against another loan.equity in rented property €100k
Forget about the other property - there's already a mortgage on it, and it's not 2007 any more.I have another old commercial property in my name that I want to convert into one/two rental residential properties. It will take +€300k to complete works.
The property is debth free and worth €40k. When renevation is complete i would estimate €250k min.Forget about the other property - there's already a mortgage on it, and it's not 2007 any more.
What's the situation with the property that you want to renovate? Is there any debt secured on it? What's it worth, and how much will it be worth once renovated?
Banks are doing you a favour not providing loans for that type of project!!The property is debth free and worth €40k. When renevation is complete i would estimate €250k min.
You may not be but a lender will. They want to ensure that if you default, they can get their money back.The workings are off, because im not concerned about value when finished, i intend to rent. Forgive the naivety. Realistically if i converted into two units it would be around €400k value when finished. With a gross of return of €60 k, would a bank consider me, or when can i get funded. ?
Absolutely not. That's a 15% rental yield, so it's either a pipe dream or in an extremely high risk area.With a gross of return of €60 k, would a bank consider me
Realistically if i converted into two units it would be around €400k value when finished.
I don't think the €60k represents rental yield. I took it as the potential profit (€400k -€340k).Absolutely not. That's a 15% rental yield, so it's either a pipe dream or in an extremely high risk area.
Ah, makes sense. The 60k would disappear with professional fees and interest.I don't think the €60k represents rental yield. I took it as the potential profit (€400k -€340k).
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