Before taking the plunge and buying an empty property, a number of factors must be considered. Take time to work out a budget and ensure there is enough money available to complete the project. Find out which grants may be available to subsidise the cost of the work, some local authorities offer an Empty Homes Grant. Employ reliable conveyancers, architects and builders and ensure the property is eligible to undergo the changes that are planned, as a project can be wrecked by legal restrictions or a listed property.
It can be difficult to find a mortgage lender willing to finance the renovation of an empty property. Most property developers will want to borrow the purchase price and the renovation costs, but lenders consider this to be high risk as the mortgage will be higher than it is actually worth in its current state. In general, lenders want to be able to recover the loan amount by repossessing the property if a borrower defaults on payments. An empty property is unlikely to provide this option. However, there are a number of lenders that specialise in providing mortgages for run down properties such as: