Mortgages & Home Finance Finance Answers & Solutions

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1. I have £70,000 in a savings account, how can i invest this in a way which will pay for my daughters private education for the next 8 years at £10,000 per year without using up all the money ?

   Posted by sandy thain on 14/10/2008 16:46:03

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2. I have noticed a problem with banks in that there seems to be very little in the way of financing of residential boats which are older than normal , and which are longer than the standard leisure boat size ,eg Barges. Why is this so?.

   Posted by Kenneth Taverner on 31/08/2008 16:08:30

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3. I need some advice on how to buy my nan's bungalow. She has had to go into a care home so my Dad has had to put it up for sale to pay for all the fees. It is a run down large 3bed detatched with a large plot to the rear which used to be my grandad's old garage and workshop when he was alive. The plot doesn't have any planning permission on it but we have been to see the local planning dept. and they have said that planning would be granted but until we submit any plans then they wouldn't be able to advise on what we will be able to get. Its going to be me and a friend who want to buy and do the development. It was originally sold for £300k but my Dad pulled out because she kept messing him around with the buy price. Me and my friend have just agreed a buy price of £285k. The bungalow itself needs about £20k spending on it, new kitchen, bathroom re-wire, just the basics when doing a standard refurb. This should then sell for around £250-280k. Then there's the rear plot, which has it's own access road up to it, is the same size as the one the bungalow is on. Now lets say at worst case we will only get planning for another 3bed bungalow the same size as the other one then we should get £250-280k for that one too. But behind the plot is a 4bed detatched house which is on the market at £400k. So best case we get planning for a 4bed detached house and sell for around £350-400k. I have spoken to a number of development finance companies and basically we have 2 options. One is that they will give us a maximum of 80% ltv of the property at 2.5% above base rate on a rolled up basis and would have to find the other 20%. Or the other option is on a bridging loan basis and that they will lend us the full purchase price plus all development build costs at 1.6% per month rolled up interest. We have no money to put into the development so that rules the first option out. And with the buy price at £285k, £20k for refurb costs and sat £10 for any other costs we need £315k at 1.6% which is over £5k per month just in interest. There's got to be some other way of financing this deveopment than this. Can anyone help us???

   Posted by Richard Massingham on 25/08/2008 12:08:09

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