unusual mortgage requirements...any idea where i can go?

[joko]

heres the situation...

I have a house (mine, but still in my dads name legally) that is large enough to be converted into 2 flats...the house needs repairs doing but its not feasible while i am still living in it.

i would like to move somewhere else...so need a mortgage...however as a freelancer who is relatively new to my field i dont have a regular enough income to be considered in normal crcumstances...

so what we'd like ot do is...get a mortgage, but pause the repayments, for 5-7 months while the work converting the house into 2 flats is done by my brother...then once they are complete and have tenants, the mortgage will be paid using their rent, and the other flats rent will pay for the work done.

can anyone tell me a company that would agree to this deal..?
my dad be a guarantor for this

i have asked a few companies and all said i must be th eowner of the property...but its only mine in 'spirit' as its to be left to me in the will.

my dad wont sign it over yet because they live on the rent, which i sometime need paying by the housing benefit.

thanks

[cassa333]

You do not own a house.

Owning one in spirit means you do not own a house.

If your parents die before they make a will or leave it to the local cat's home you will not own a home.

Your option (amongst others I can't think of right now) are 1. Get a business plan together and a business loan to buy the property from your parents. Then perhaps (if they haven't left it to the cat's home) they may leave you a lump sum when they die.

The reason I say this is because you don't have a regular income at the moment and no colateral as a garauntee. Even if you got a home morgage they more often than not have a 12 month exclusion on payment holidays.

[joko]

cassa...the house is mine...it is willed to me and i have lived here 15 years...its has been given to me in all but the deeds. it will not be going anywhere, let alone a cats home and thanks for your answer but i am not a child and dont need to be told 3 times that i dont own the house...especially since i told you that in my original post, and it is the main reason for my post - the fact that i dont own it.

my post is asking for somewhere or someway that will help me solve this issue

[buildersmate]

I don't think this is do-able using the house as security, sorry. Although in your heart you may believe you effectively own the house, legally you don't and every mortgage company will want to assure that they have security of an asset (house) to make sure the capital can be returned in the unlikely event that you defaulted.
This is a business venture, not a mechanism for you to seek to buy yourself a house. Lenders will see it as that, and want to see a business plan for it.

[LoftyLottie]

Sorry Joko, I have to agree with the others. You will not be able to get a mortgage on it because even if you had lived there all your life and even if it is willed to you, it is legally still your father's house. There are no guarantees that you will eventually get the house. Your father could change his will at any time or could die with huge debts and the house would be used to clear these debts. Mortgage companies do not take risks. It might be wise for your father and yourself to seek the services of a financial adviser to see if there is anything you can both do to put your plan into action.

[LoftyLottie]

Oh most definitely Vibra!!

[joko]

lol vibes...i know couldnt think of another way to say it haha

thanks all yes thats what most of the companies told me...

so guarantor has no weight here?
could he be guarantor on a loan from a bank under the same circumstances?
anyone know if a particular bank are 'open' to this sort of thing?
between them my dad and bro have lots of properties that they would use a guarantee.

would the knowledge of a loan to pay 6 months of mortgage, safisfy the mortgage company...? would they accept the cash this way?

or essentially is the only way for this to work is if he transfers ownership to me?
the only reason he hasnt so far is that sometimes i need housing benefit for them and i wouldnt get that if it was in my name
my dad is a landlord you see, and owns a few other properties and relies on the rent as income, particularly now hes retired.

thanks all

[dzug2]

You can only get a mortgage on a property that is legally yours - by definition. There is no way round that.

You may be able to get a loan (not a mortgage) with a guarantor - though if you are housing benefit I'd doubt it. I don't know what companies to suggest

[redcrx]

i wonder if you dad could remortgage the property in his name and then lend you the money?

By the sound of it, even if you did own the house you may not get a mortgage due to low income.

[joko]

thanks

ill check out the specialist thing...there must be some way round this...lol

[joko]

redcrx, they wont let my dad do that as hes 81...

thing is, once the house is done, i wont be on low income, i'll possibly be getting around £1000 a month to pay it with.

just to clarify - the mortgage would be for another house that i would move to...i dont need a mortgage for this house - as we own it...

thsi house would just be possibly used as collateral on the promise that once the work is done, money will be coming in...

its only that 6 months that i wont have any cash to pay the mortgage...and i just need to find a place that will accept that as a guarantee.

but will a mortgage co, accept a loan from the bank to pay that first 6 months...?

[cassa333]

What do you have, that is yours NOW that can be used as collatoral?

By the sounds of it NOTHING. Therefore you are a bad risk to the official financial institutions. You won't get anywhere unless you go to an unscrupulious money lender who will charge you upwards or maybe even more than 5000%

The only way around is for your father to sell you the house (you possibly wouldn't get a morgage on a low income and can't even afford your rent sometimes), gift you the house (you would be liable for capital gains tax if he dies within 7 years or you make a vast profit now), remorgage the house himself and give you the money (again capital gains taxt comes into play) or Well to be honest I can't think of an OR although I do understand that there probably is one.

Face it, you are on a low or unreliable income and have no assets to speak of. Only someone who has a personal interest in your future would invest in you right now.

[Nosha123]

"there must be some way round this"

Dont bank on it JOKO - you may think you can see a perfectly viable opportunity here - but the banks dont necessarily see it the same way!
They lend based on collaterall and affordability - and anything outside the box is deemed to risky for them to invest in...
Also - you cannot mortgage a property you do not own - its not legal... (as far as I am aware!)

[LoftyLottie]

Which is why, my dear Vibes, I suggested that her and Dad go and see a financial specialist. You see you and I are on the same wavelength!

[annie0000]

Would anyone consider you for a buy to let mortgage (or rather your Dad)? Maybe with you as guarantor? You would probably still have to evidence earnings though.

[annie0000]

Maybe vibes, but if you are not tied in for too long and it is seen as a way in, then might be worth the higher payments initially.