123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

4 Ways To Finance A Property Refurbishment

By Author: robert fogartys
Total Articles: 62

When buyers are seeking to purchase a worn-down property to improve and sell, they will need to consider their options for financing the purchase. There are things to consider for each method, including the time it will take to complete the purchase, and what potential draw-backs may exist with each method. These 4 ways for financing a refurbishment will detail the benefits and details of each method.

1) Raising funds by re-mortgaging the buyer's home: Some buyers will choose to re-mortgage their home in order to fund their property refurbishment project. This method has become quite popular due to the fact that it is very often the least expensive way to get the necessary financing. It is important that buyers disclose their intention to use the funds to place a deposit on an investment property. Buyers should deal with an independent mortgage broker when choosing this method. It is also wise for buyers to seek consultation regarding the risks their family will be exposed to when re-mortgaging the family home. An accountant can help buyers structure their mortgage account in way that will offset costs of mortgage directed to the refurbishment property with any profits from the sale.

2) Deferred Completion: This method consists of a contract exchange upfront with a set date for completion of the contract at some point in the future. Buyers will then make an offer based on these terms, detailing that they wish to refurbish between contract exchange and completion. Since most sellers will be advised against this by their lawyers, it may be necessary to offer 50% payment upfront. This would need to be in cash, and therefore will only be an option for some buyers. The reason sellers are advised against this method is that buyers could potentially wreck the property and not complete the contract.

3) Refurbishment Mortgage: This third option is a standard lease to buy contract. Buyers should be aware of potential charges regarding early repayment if selling is the intention.

4) Bridging Finance: If buyers have a property with no mortgage, it is possible to get full funding by providing a charge against two properties: an existing property as well as the refurbishment home. Bridging financiers are more likely to lend to wide ranges of people as long as they see potential for making a profit.

These options will give buyers some insight into what might work for their situation. Property refurbishment can be a profitable endeavour if the buyer is educated. Finding the best financing option is important, not only for the speed of transaction necessary, but for financial and contractual concerns. Buyers may need to explore several options in-depth or meet with financial advisers before making a decision.

A good strategy for buyers is to develop a list of positives and negatives for each option. This will help buyers to understand the long-term effects of each financing option. It will also make clear which choice would create the most ease in completing the transaction. Buyers should aim to reduce unnecessary stress from a complicated contract since they will also be engaged in managing the property refurbishment project.

If you are based in Kensington, London, you should visit the following website:
Property Refurbishment Kensington

Total Views: 165Word Count: 530See All articles From Author

Investing / Finance Articles

1. Gwadar – The Opportunity Is Now.
Author: China Pak Hills

2. Dangerous Myths About The Forex Market
Author: Then Divan

3. Smart Ways To Prepare For The Tax Season
Author: John Panayis

4. Tax Tips For Teachers 2018
Author: Lauri Pitcher, CPA

5. Quick Same Day Loans
Author: John

6. How Does The Asian Trading Session Operate?
Author: Viet Son

7. 5 Most Popular Types Of Mutual Funds
Author: Vikas Malhotra

8. Benefits Of Initiating Wire Transfer From Usa To India
Author: Jack

9. 5 Tips To Keep In Mind When Using The Emi Calculators
Author: Chintu Yadav

10. Commodity Trading For Beginners – A Descriptive Guide
Author: Sophia Mason

11. 3 Tips To Improve One’s Trading Performance
Author: Amir Milan

12. With Fx Seminars A Beginner Can Easily Mastery On Forex
Author: Joyce Shen

13. Currency Trading – How It Will Be Simplified
Author: Joyce Shen

14. How Can You Get Home Loan From State Bank Of India
Author: Loansninsurances

15. Secure Your Privacy 100% From Future Data Breaches Like Equifax
Author: Judith Neely

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: