Borrowing a huge sum of money to buy a property to do up before selling current home?

[Mintyy]

Anyone know if any lenders do this?

I am interested in a property that needs a lot of work doing to it but can't face the idea of living in it while it is modernised.

So, I'd want to borrow about £620,000 for 3 or 4 months, all to be repaid by from the sale of our current house. We live in a property hotspot where houses like ours are selling like hot cakes, and we would be downsizing quite significantly, although would still need a small mortgage.

I'm guessing this is impossible?

I suppose it depends how much deposit you have.
Don't forget the stamp duty & conveyancing fees, to add to the building costs.
I'd start by talking to your existing lender about loan to value.
Sounds exciting.

remortgage your existing home ? Providing you can of course get a mortgage for that amount and make the payments ?

worth a go. Alternatively, sell your place and rent somewhere will you do up the other place.

I sincerely want to avoid renting in between, as we'd have to do a minimum of 6 months and it involves packing up and moving twice and all the effort that entails.

Forgive ignorance ... remortgage existing house? how does that work?

Your original post says So, I'd want to borrow about £620,000 for 3 or 4 months, all to be repaid by from the sale of our current house. We live in a property hotspot where houses like ours are selling like hot cakes, and we would be downsizing quite significantly, although would still need a small mortgage.
By this I take it the new house would be less than the cost of your current home and your old house does not have a mortgage (or a not very big one) ? Pull the capital from your existing home by taking out a mortgage on it to but the new place cash. An IFA will be able to go into the figures.

We do have a mortgage on our existing house.

The cost of buying this other one is approx the equity we have in our current home.

Can I pm you the figures?

I think a bridging loan is what you need. Don't know much about them sorry but think they have a higher interest rate than a normal mortgage?

Sorry Minty, I am not am IFA however I do know an excellent one if you want her details PM me (she has arranged several mortgages for DH and I) she does a lot of work via phone email these days. You may be able to pull out 80% of your equity in your current home on a remortgage to buy the new one.

A couple of ideas:

Try buildstore. They do specialist renovation mortgages

As regards withdrawing all the equity from your current house I don't think they will let you withdraw it all as mortgage companies will not lend 100% of house value these days. Also, most lenders don't like the idea of two residential mortgages - you will need a second mortgage if you can't buy the second property outright with equity you can release. So I would say best thing would be to have one of the mortgages as a buy to let with small or little redemption penalty.

Bridging loans are possible but Very expensive so to be avoided