Self Build Mortgage woodman2

#1
Hello all,

I have an interesting question to ask you wise people.

I have a plot of land with planning permission for sale.

An interested party has offered to buy the land but is having trouble raising a mortgage as he is paid in Euros not GBP.

I have available funds and could in theory offer him a Loan/Mortgage to purchase the land and build the house.

Is this possible, and what is the collective view as to the desirability of such a strategy?

#2
Strictly speaking, in order to lend money you need to have various licenses/insurance. However if it is a one off then it may be a little different.



I suppose it depends how well you know the person.



But if it stacks up for both of you, go for it. Just ensure you get the paperwork in place. What happens if he does not keep the build to building regs/what happens if it over runs/what happens if he can not get a mortgage down the line?



What happens if he does not pay?

What happens if he has paid 90% of the money?



Legal advice for both of you is pretty important.

#3
Thanks ACG for your reply.



Lots of questions, and I would certainly need to look into the legality of the deal a lot further.



I don't know the person at all, so would need to do all the due diligence, credit checks etc just the same as a bank.



They would be our neighbour, so that also needs consideration.

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