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Posted: Mon Mar 13, 2017 5:03 pm
by abel
So if my understanding is right you don't have a mortgage? If I was in your situation I would write a list of jobs and prioritise them. Then do a budget to see what you can save each month. Then just do each job in turn once you have saved up enough. I'm guessing the house has running water and toilet facilities? Anything else can be worked around till you can afford it.

Posted: Tue Mar 14, 2017 2:34 am
by LordLaz
Hi Foxy-stoat,



Recently very little as we've been putting it back into the house, and in the early stages of our businesses income is varying considerably. For the purposes of repaying a loan we should have available £500 per month, sometimes more. Thanks.

Posted: Tue Mar 14, 2017 1:31 pm
by LordLaz
Hi Leslieknope,



Do you happen to know of any recommended equity release agents? From what I've looked at so far there seems to be quite the gamut and in these circumstances would definitely prefer to contact someone that there has been firsthand experience with. Thanks very much for posting.

Posted: Wed Mar 15, 2017 2:05 am
by LordLaz
Hi Fireflyaway,



The property doesn't have central heating and most utilities are off grid. For the property the most appropriate central heating will be underfloor heating powered by a ground source pump. It's a job that needs to be done in one hit and requires a contingency fund to remedy any unforeseen problems that emerge. I'm no sissy but having gone through one winter without heating I am definitely motivated to have the work done before next winter. I just am unlikely to have raised the necessary sum by then. And given the value of the property and absence of a mortgage it occurred to me it might be feasible.

Posted: Wed Mar 15, 2017 11:47 am
by lorddumbo1512
Hi Stellaah. First of all, well done for grabbing hold of life with both hands. Prudence would be the order of the day on here, but following your dreams is what life is all about.

I'm no expert on equity release, but looking at your age(s), I'm not sure what would be available. You have no intention of selling, so it follows that the loan would probably not be paid back for 35-40 years. I don't know what interest these companies charge, but £30000 could turn into a very large sum in that amount of time. If property prices grew at a faster rate, in your area, over that period, you would be fine. But if they lagged well behind, they could end up owning most of the value of your house. On the other hand, an equity loan as a percentage of the value of your house would only stay at that percentage. I really don't know how it works.

That is why you really need to see an advisor in my opinion, it is a big decision. Good luck.

Posted: Wed Mar 15, 2017 11:03 pm
by cristiecristin
Sounds like you have an exciting project ahead of you.



I bought a place that needed a total refurb and I have already spent well over £20k with a lot more to go. Multiply that £20k by 4 to get a realistic figure (unless you can do most of the work yourself).

Posted: Thu Mar 16, 2017 7:39 am
by LordLaz
Hi Shakin Steve,



Thanks very much for your post. Prudence is always good and it's definitely sensible not to overstretch yourselves financially over something as important as a house but I did the same 30 years ago and never regretted it.



Yes, it is the length of the term that causes me the most concern. The percentage value method would definitely be more sensible of the two. Though a standard loan would be even better. But even then, given how much value we've already put on the property with the work already done even a percentage basis will see the lender handsomely compensated for the equity release loan. But you can't have your cake and eat it, of course. If you want the money you're gonna have to pay the price. Maybe it will be another cold winter after all.



Thanks very much for your input. Really appreciate it.

Posted: Thu Mar 16, 2017 11:57 pm
by bashee



Hi Shakin Steve,



Thanks very much for your post. Prudence is always good and it's definitely sensible not to overstretch yourselves financially over something as important as a house but I did the same 30 years ago and never regretted it.



Yes, it is the length of the term that causes me the most concern. The percentage value method would definitely be more sensible of the two. Though a standard loan would be even better. But even then, given how much value we've already put on the property with the work already done even a percentage basis will see the lender handsomely compensated for the equity release loan. But you can't have your cake and eat it, of course. If you want the money you're gonna have to pay the price. Maybe it will be another cold winter after all.



Thanks very much for your input. Really appreciate it.
Originally posted by Stellaah


Don't you just want a small mortgage, with a payment holiday for a year or two? You're a bit young for equity release, besides which you'll want to repay the loan when your business takes off.

Posted: Fri Mar 17, 2017 5:40 pm
by LordLaz
Thanks very much Annie 1960.



Well done on your project! One of the advantages of stone/cob properties is that much of it is grunt work - hacking out all the wrong things that have happened to it In relatively modern times. (Concrete and cement are a traditional building's enemy.) Mostly its dirty/grotty work that we can do that takes time first, and then money. The work will be done in stages but this is kind of the one we'd have liked to be able to do sooner rather than later. We'll see. Thanks for posting.