Financing Property Project

Hi

I have a property worth =A3200k, of which =A3180k is mortgaged
My business partner has a property worth =A3300, of which =A3100k is
mortgaged
We are both willing to use the equity on these to secure finance for
the following...

We would like to finance the purchase of an auction property which we
wish to renovate and sell.

What options do we have for finance the purchase of the third property?
Would a bank give us a mortgage secured under the equity held on our
own properties?

Thanks

Re: Financing Property Project

<> wrote in message
news:
Hi

I have a property worth £200k, of which £180k is mortgaged
My business partner has a property worth £300, of which £100k is
mortgaged
We are both willing to use the equity on these to secure finance for
the following...

We would like to finance the purchase of an auction property which we
wish to renovate and sell.

What options do we have for finance the purchase of the third property?
Would a bank give us a mortgage secured under the equity held on our
own properties?

Thanks
=====================================

I would very much doubt it on your property..its not _worth_ £200k its
_valued_ at £200k. That is a 90% mortgage on which someone else has first
call. Doesnt leave much for the bank does it, and if your valuation is
optimistic, (bank valuers will always value lower to leave a safety margin
anyway)or prices fall a tadge, it leaves nothing.I would say that
effectively you dont have any equity in your property.

--
Tumbleweed

email replies not necessary but to contact use;
tumbleweednews at hotmail dot com

Re: Financing Property Project

"Tumbleweed" <> wrote in message
news:
>
> <> wrote in message
> news:
> Hi
>
> I have a property worth £200k, of which £180k is mortgaged
> My business partner has a property worth £300, of which £100k is
> mortgaged
> We are both willing to use the equity on these to secure finance for
> the following...
>
> We would like to finance the purchase of an auction property which we
> wish to renovate and sell.
>
> What options do we have for finance the purchase of the third property?
> Would a bank give us a mortgage secured under the equity held on our
> own properties?
>
> Thanks
> =====================================
>
> I would very much doubt it on your property..its not _worth_ £200k its
> _valued_ at £200k. That is a 90% mortgage on which someone else has first
> call. Doesnt leave much for the bank does it, and if your valuation is
> optimistic, (bank valuers will always value lower to leave a safety margin
> anyway)or prices fall a tadge, it leaves nothing.I would say that
> effectively you dont have any equity in your property.
>
> --
> Tumbleweed
>
> email replies not necessary but to contact use;
> tumbleweednews at hotmail dot com
>
>

I agree.

You have no assets to put into the venture.

Your business partner however, could potentially raise a significant amount
using equity from his property, but I don't see how that helps you, unless
he's a bit gullible;-)

Adrian Smith