financing for 2 flats

[stevieg1976]

Hi....this question is for my sister!!
...She has a morgage on her large 3 bed terraced house and has remorged to her limit?? She owes approx �80 000 and it is worth approx �120 000 so she has approx �40000 equity. She cant sell as she would have to downsize as she is single and works part time so can only get about �65000 morgage which u cant buy a shoe box with!!
Does anybody know if a bank would lend her money as a business plan to change her house into 2 flats leaving her with 1 flat bought outright and the other to sell???

I reckon it would cost approx �40 000 and each flat worth �75000 - �85000 totalling �150 000 to � 170 000 well worth doing but would a bank refuse her??

I said i would try find out for her . Thankyou for any replies!!

[Oneeyedvic]

What you are looking for is called development finance and it is available through specialist lenders.

It needs to be costed very accurately as in the above example she is spending �40,000 to gain an increase of between �30,000 and �50,000 which does not make a great deal of sense as she could bnd up owing more and owning less!

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