Posted by: Moon | May 13, 2011

Juggling the Cash !

So, buy an old cottage, borrow responsibly, and end up with your dream country cottage with a sensible mortgage… sounds simple doesn’t it.

Well, as most of you know (unless you are borrowing in America) banks will not lend you more than your property is worth. Logical stuff…. So, if you buy and old cottage worth fuck all, how are you supposed to borrow the money against it ? The banks have been very good with us, and the solution all banks use is to agree to lend you the money, but of course, only let you physically take the cash as you improve and raise the value of your property. Also, they want to see you investing your own money alongside theirs. No longer (quite rightly) are the banks lending even 90-95% of the value.

So, we have a constant battle with money. We get given a lump sum, for example, 10k, we then have to decide where that should be spent, to raise the value of the property, so the bank will release the next 10k So, you have to work out what the bank decide is adding value, not what we might decide and like to do. So, the fact we have to pay our builder does not add value to the property. The arduous task of levelling every floor throughout the property, taking a huge amount of the builders time, considerable skill, and heaps of concrete… does not really reflect in the value and lending potential.

Adding plumbing does, completing the bathrooms does, Sparks does, new windows clearly does, and the biggest thing, adding a new roof… but you can’t do all that in the logical order you would think. Currently, we are fitting a bathroom and water recycling system… how crazy is that, when we still have a half open house…… bathroom fitting should be last… but, you cannot fit a recycling system without having a fitting bathroom and or kitchen… so, that’s what we have to do…. So, not quite as simple as it first sounds.

Mrs M is an expert at organising people, the builder is very good at understanding that what he logically knows is the right order, has to be changed to suit us and the bank.

We are getting close…. We are building the final outside wall, this is going to support the new roof. The roof fitting will start in about 2 weeks time, and will be completed in June, following that will be the second set of new windows and doors. The under floor heating will go in next, along with Furnace, and water boiler …… The kitchen and bathroom are being done at the moment, and then we can build the fireplace and final internal chimney/wall ….

All major things, and a lot of tidying and finishing, which always takes an age…… We are hoping for a July move…. We will see. Pictures to follow, and soon, you will all be invited to the house warming …. Well, maybe in August ….

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Responses

  1. So much progress Moon!!.. Wwll, scheduled progress too… but still, it really sounds like it’s coming along a treat ! 🙂

    • It is, and we are very happy, just taking longer than we thought, but it is being done properly…

  2. Ahhhhh, the life and times of a property developer. Cash advances and accountability. But it does sound like you are making progress. The end is in sight. Looking forward to the pictures. Oh yes, and surely the wine cellar has greatly increased the value of the property?

    • Not really, The MIL is buried there ….

  3. Can’t wait for the housewarming … will there be champagne?


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