Stand alone garage

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    Stand alone garage

    Hi, I have a stand alone garage. Worth approx. £35,000. The land is freehold. Does anyone know of any land mortgage company that will accept? I'm open to options. I have thought about paying off half and getting a private loan for the other half. It is on a second charge mortgage, I need to get it off of the second charge when I re-mortgage.

    #2
    Must be very well located to be worth £35,000

    Comment


      #3
      Is this a garage for accommodating your own car or is it a commercial garage, does it have Planning Consent ? How have you arrived at £35000 valuation.
      You mention the funding is by way of a second charge, is this secured on your primary residence or a non regulated BtL.

      More info please in order that I can post a constructive reply.

      Comment


        #4
        loanarranger,

        It is a garage for a car. I use it for storage (I used to run a decorating company). Not allowed to do anything with it apart from use it as it. However, you are allowed to knock the garage down and rebuild it (because it is freehold). It was advertised for £35,000; I brought it two and a half years ago. So, it would now be around £39,000. Second charge is primary residential.

        Comment


          #5
          Thanks for the information, do you believe it viable for the garage to be converted into a small self contained residential unit, I will do some research given the current usage and if it were developed.

          Comment


            #6
            it must be in a very good area to be worth that some of change

            Comment


              #7
              It is on the outskirts, in a wealthy part, of London. This is why I decided to aim to keep it. Only allowed to be a garage, as there are constraints on the title. I was pleased it increased 4k.

              It is next to a substation. If I connect electricity, it is worth £50k.

              Comment


                #8
                Apply here............https://www.ukpowernetworks.co.uk/el...new-connection
                Probably more practical that PV panels on the roof!

                Comment


                  #9
                  I already applied, they said they can connect when I chose to. I plan to remortgage the residential to buy 2 more additional flats. So, may as well keep hold of the garage. At the end of the day, it adds to the portfolio.

                  Comment


                    #10
                    The fact that it is adjacent to a power substation rules it out of serious consideration and the planning restriction is unfortunately the final killer.

                    Thanks for providing the information as requested but I can only suggest a review of your residential funding to establish if you could either Remortgage or ideally obtain a Further Advance to enable the expensive 2nd charge to be redeemed.

                    Comment


                      #11
                      Thanks loanarranger. I'll need to think, perhaps a small bridging loan or something. Obviously, a little bit of inflation will help.

                      Comment


                        #12
                        A. Bridging loan requires a guaranteed exit route, it is not sufficient to declare “To be repaid”
                        Please take note that it is not just the cost of such a facility which needs to be considered but what are the costs, the valuation fees are always higher than those for main stream lenders as indeed are legal costs ( I had a quote for a client of £1100 plus Vat for a £75000 loan on a £125000) which when added with the Val and other costs including a 2% Completion Fee might make your current second charge relatively inexpensive. Just be careful.

                        Comment


                          #13
                          Not to mention the high rates of interest payable on bridging loans - 1% per month not unusual. It soon racks up. Always try to stay in the mainstream of lending. Ridiculously second charges are totally unregulated.

                          Comment


                            #14
                            So, what i'll do, when I re-mortgage the residential onto a buy to let, and release equity, i'll pay off the existing loan. I'll get electricity connected in the mean time and in a position to sell it. Worst case it must be rented out.

                            Comment


                              #15
                              That sounds like a positive strategy going forward.

                              Comment

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