sti-04!!

Property worth 750k, requires 250k of work. Once completed will be worth in excess of 1.3 mill at todays rates I have a mortgage outstanding on the farm for say about 30% of the total value. The property in question i was gifted so to speak, so nothing outstanding on it ?

What would be the best way of raising the other 250k ? Max term will be 5 years.
Increase the mortgage on the farm or go for a new mortgage on the house ?

Just looking for opinions as my FSA is on holiday till next week & this is rattling about in my head.

Cheers

miff13

I'm no expert but if you can pay the mortgage off that quickly wouldn't you be better just saving £50K a year for five years, and then getting the work done? or do £50k's worth of the work each year. You'd save about £55K in interest.

PeteBrant

Or - If you are looking at 5 years - then the property will be worth around £1.1 million purely from house price inflation, without lifitng a finger, or spending a penny, leaving you better off in real terms.

That is assuming house prices rise by a similar amount as they have for the last 5 years - but then you are taking that risk if you buy it and spend the £250K anyway.

DCI Gene Hunt

Sell it now and then start a new thread...

"What's the best way to invest £750K..."

sti-04!!

I wouldnt buy an M5 thats for sure

Ted Maul

take out a £250k mortgage on the house, get the work done and sell in 5 years, clear that mortgage. don't lump in the £250 with the farm mortgage as your LTV will be a bit high and I don't think you'll get as good value on the deal.