Borrowing Money is Required Whenever Selling an Unoccupied Property

Selling an unoccupied property often requires borrowing money to cover the costs of the sale, such as real estate agent fees and taxes. This is because unoccupied properties can be harder to sell, and the seller may need to offer incentives to attract buyers.

In the UK, for example, the average time it takes to sell an unoccupied property is significantly longer than a occupied one. This can result in additional costs, such as mortgage payments and maintenance fees, that the seller must cover while waiting for the sale to be finalized.

Sellers may also need to borrow money to cover the costs of repairs and renovations to make the property more attractive to potential buyers. According to a survey, 70% of buyers would be willing to pay more for a property that has been recently renovated.

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Borrowing money is required whenever you have a cash flow gap, space constraints, or inventory needs that your small business can't cover on its own.

Taking out a loan can be a practical step for those seeking growth, allowing small business owners to tackle challenges that might otherwise hold them back.

A loan can provide the financial assistance needed to get your business back on track, but it's essential to approach borrowing responsibly.

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Starting a small business requires dedication and often, taking out a loan. A loan can be a practical step for those seeking growth.

Taking out a loan can allow small business owners to tackle challenges like cash flow gaps.

Investing in your small business is a big decision, but it can be a game-changer for those who need it. A loan can provide the necessary funds to cover expenses and drive growth.

If you're an empty homeowner looking to renovate your property, there are financial assistance options available to you. Loans of up to £50,000 per unit are available for renovating properties, with the empty homeowner responsible for project management.

To be eligible, your property must be made available for private let or through EasyLet. A 20% grant is also available if you agree to rent in line with the Local Housing Allowance through EasyLet.

You can also get support with your application by getting a free statement confirming your property has been empty for at least 2 or 10 years.

Alternatively, you can consider Empty Property Loans (Via Lendology CIC), which offer repayable loans to finance property repairs. The loan amount can range from a minimum of £500 to a maximum of £30,000 per property.

Here are the key loan conditions to keep in mind:

It's worth noting that these loans can only be used for repair works specified and agreed by the relevant authorities, and the property must be brought back into residential use or for sale at market value within the specified time frames.

Borrowing money is required whenever you need to finance property repairs to bring an empty property back into use.

You can borrow between £500 and £30,000 per property through the Empty Property Loans scheme, administered by Lendology CIC.

The loan can be used to cover specified and agreed repair works, and a contingency can be included if necessary.

To be eligible for the loan, you must have the property inspected by the Empty Property Officer and agree on the works to be done.

Loan funded works must be completed within 12 months, and the property must be brought back into residential use within 3 months of completion.

Alternatively, you can borrow up to £50,000 per unit through the Empty Homes Financial Assistance scheme, which also offers a 20% grant if you agree to rent through EasyLet.

To qualify for the grant, you must rent your property in line with the Local Housing Allowance through EasyLet.

Here are the loan options available for bringing empty properties back into use:

If you're looking to borrow money for property repairs, Empty Property Loans (Via Lendology CIC) might be worth considering. These loans can be used to finance property repairs to bring empty properties back into use.

The loan amount is between £500 and £30,000 per property, administered by Lendology CIC. You can claim a maximum of three loans per applicant per financial year, with a combined limit of £90,000.

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Only one loan can be claimed per property, and the loan funded works must be completed within 12 months of final loan approval. The property must be brought back into residential use or for sale at market value within 3 months of completion.

Eligible works must be agreed by the Empty Property Officer at a pre-work inspection. You can also include a suitable contingency in the loan if needed.

Here are the key loan conditions at a glance:

Writing down a loan agreement may prevent disputes, according to Ms Bolton. A piece of paper can save your relationship with the person you borrowed from.

It's a good idea to document the arrangement, even if it's just a simple note at home. This can be especially helpful if you have a long-term loan, like one that's 10 years.

Having both parties sign the document and keeping a copy each can provide a clear record of the agreement. This can be a valuable backup in case of any issues.

Even small loans, like $500, benefit from a paper trail. A simple email confirming the loan terms and repayment details can be a good starting point.

Additional reading: Good Money

Borrowing money from a friend or family member can be a great way to get the funds you need, but it's essential to plan and prepare carefully.

If the loan amount is significant, it's a good idea to see a financial planner and/or lawyer to get more detailed advice.

You should have conversations with the lender to agree on the parameters of the loan, similar to if you were going to borrow from a bank. This includes discussing expectations of repayments, the time frame for repayment, and whether interest is payable.

It's common for people to fall into a trap of "just pay it back whenever you can", but this can create problems down the line. A backup plan should be in place in case you fall behind on repayments.

Borrowing from a friend rather than a bank can give you more motivation to pay it back, as seen in Valerie's experience of borrowing $5,000 twice from a best friend to secure a place to live.

A financial planner can help you work out what is reasonable in terms of repayments and interest, and address issues like what if the lender was to pass away before the loan is repaid.

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