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Remortgaging a ex-council flat


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Hi Everyone,

I need some advice please.

I brought a ex-council flat (1st floor) a few years ago at auction for about 37k and have a did a lot of improvements such as new kitchen and bathroom, fire door and fully decorated.

It was valued in August 2020 at 65k, (a recent sale in same block went for over 66k a few weeks ago).

I am now looking to remortgage the flat to release funds,  I know most high street lenders dont like ex-council flats so have to look at specialist lenders.

My main concerns are; in the block most of the flats are still council, construction is brick so that's ok.

I am currently not working and have no income.

I am considering lenders such as Together but they are expensive, eg, app fee £1172, Solicitors £600 Interest rate 6.99%

Can anyone suggest any lenders who are cheaper?

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Most mainstream Lenders will consider this subject to valuers comments, loan to value and the number of floors in the block.

E.g. 6 floors with no lift at 85% loan to value will likely be a struggle.

3 floors at 75% LTV will likely be ok.

Are you going through a Broker? If not, it would be a good idea to do so.

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Hi,

I have tried using L&C, BM Solutions and Leeds Building Society  did not lend as most was own by the council, my only option is to use a specialist lenders such as Together but they are expensive (Fees £1172, Legal £700, Rate 6.99%, 75 LTV) I have spoken to them and I already have a mortgage with them for another flat in the same block, so I am guessing they will lend.

 

The block is only 3 story high, the only problem is most are council and I am not working at the moment so no income so my options are limited finding even a specialist lender, can you suggest any lenders please? 

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This isn't one for L&C in my opinion. There going to get paid a couple of hundred for this, so it's simply not worth their time. No income is going to complicate things more, but there could still be options. It will take a broker or yourself to ring around lenders and discuss the case with them. I imagine the answer will be subject to valuers comments in most cases. And as above, could result in a no. But I personally would give it a go, if Together was my only other option. I have nothing against Together, just feel it can be quite a painful process as well as expensive.

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8 hours ago, mortgageinfo said:

This isn't one for L&C in my opinion. There going to get paid a couple of hundred for this, so it's simply not worth their time. No income is going to complicate things more, but there could still be options. It will take a broker or yourself to ring around lenders and discuss the case with them. I imagine the answer will be subject to valuers comments in most cases. And as above, could result in a no. But I personally would give it a go, if Together was my only other option. I have nothing against Together, just feel it can be quite a painful process as well as expensive.

Thanks for your advice, I am learning towards Together, from past experience with a mortgage, and what i have been told by L&C they tend to lend to anyone, maybe thats why they are expensive as they take a much higher risk?

I have called a few lenders but they want an income of 15k-25k and some only deal with brokers.

Can you suggest any lenders who dont look for a minimum income and are ok with ex-council flats?

Thanks in advance.

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