Bridging loans can help bring “ghost” homes back to life
There are many empty or “ghost” houses that are in a derelict or semi-derelict condition. Bridging loans can be used to finance the building work needed to make them fit to live in.
As reported in a June 2017 MortgageSolutions.co.uk article, the government has stated that it is committed to providing more homes for people. Its main strategy is to promote the building of an extra 300,000 homes each year. There are approximately 200,000 empty homes in the UK, 20,000 of which are in London. If these homes were occupied, it would decrease the shortage of houses in Britain.
Many empty houses are not fit to live in without building work, and there are various reasons why work is not done. Sometimes after someone dies, ownership of their property is not established, and probate of an estate can remain unsettled for years.
Other times, family members inheriting property do not have the money to carry out the necessary refurbishment work. Also, rented property can remain empty if a landlord does not have the funds to carry out necessary work.
Investors can purchase empty or ‘ghost’ homes, and a bridging loan can be used to provide the money for rebuilding work. After the house has been restored, there are a number of options – the restored home will probably qualify for a standard mortgage so that the owner can live in it, it could be sold for a profit, or it could provide rented accommodation.
As well as encouraging the building of new homes, the government could also promote the conversion of empty ones.