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Hi all.

Im looking for financial advice on how to get started. I currently own a bungalow with my wife which we`ve completely renovated ourselves. The equity in the property is around 240k, our mortgage is around 170k with the Coventry building society. Ive tried to get a "further advance" of around a 100k to purchase a property in order to renovate and flip and then repeat. We first sought advice from a whole of market mortgage adviser who told us, after supplying basic figures that the Cov would in principle provide the cash. We`ve been through the affordability checks with the Cov, no issues there however their now saying that this is not part of their lending criteria..!

Can anyone help with advice on how to release the capital we have in our house in order to get started..?

In a perfect world id like to borrow around 110k, purchase for around 90/100k use the outstanding 10k to renovate then sell for a profit then repeat paying chunks off the cash advance as and when.

Is this a feasible idea or am i going about it all wrong..? The mortgage adviser made it sound so simple..!!

Regards

Darryl

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Flipping is a tough business thgesedays and you need to be sure that buying at 100 and 10k refurb will allow you to sell for minimum 130 as you will spend 10k in stampt duty/fees/etc so need to have a worthwhile margin. Otherwise your plan sounds fine and it should not be difficult to rel;ease some equity

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Hi,

This is a great way to gain more capital and expand. It is exactly what me and my wife did when we started out. Borrowed more on our mortgage and got a property to flip. We have been doing this for many years now with buying some btls along the way and sourcing and renovation for other investors. You just have to manage the flip realistically with budgets and time scales and more importantly buy the right property.

Im sure you could release money out of your property if you have passed the affordability. I would go back to your broker or even meet with another. A rule for one lender may be different to another.

Keep us updated on your situation and best wishes with you journey.

Jase

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Thank you for taking the time to reply, very much appreciated. I understand that with the budget I will hopefully have my margins will be tight, my difficulty will be finding the right property but I know their out there.! Ive renovated property’s before but always lived in them but this is hopefully the start of a new venture to continue with after my retirement in just under 5 yrs. Thanks for confirming that I’m on the right track. I’ll get there in the end.!!!

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