Taking out a 10 year loan

Thinking about it, I suppose that is stupid. You would take out a 2 year bond? Then roll it over into another 2 year bond?

In case Ronald is there, this is the denouoment of the "ice maiden" saga. Once again the dice has rolled Alice's way:

1) Autumn 2004 Mary dies. House prices in freefall. House valued extra low to allow for extra freefall. 2) Ice sisters complain, so District Valuer called in to rubber stamp extra low valuation, delaying things by a year. 3) Extra year allows Olympics to be allocated to London and everything goes bonkers again :)

In message , Troy Steadman writes

What you after is a loan with Interest Roll up. Dont take this the wrong way, but are you old enough for a 'Lifetime' Mortgage on your own house?

A week ago we had a nice house with a big garden. After a couple of developers have been around, we now have a development site in which the house is an irrelevancy. We want to carry on living in the house for 2-6 years, because the time to sell it has definitely not yet arrived, and then sell the whole plot.

I suppose it is "Project Finance" we are after.

£250k loan (including legal, demolishing garage etc)

for an immediate £400k worth of return +

2-3 x whatever land increases by p.a. all secured on a £600k house.

I ought to be able to get someone to finance that shouldn't I? 10% compound at the HSBC?

And to answer your question:

No I'm not aged 60.

Holy ice-lolly, Batman, 375% a month is pretty steep even by loan shark standards, this guy must be desperate.

Desperate indeed.

If you had a house that was about to be bulldozed, with a bloody enormous garden, you would think the phrase: "You take the garden and I'll keep the house" would be incapable of being misinterpreted. That is a "good" division for the gardinee.

Anyway Beatrice has taken it completely the wrong way, and is refusing to talk to Al. Al must do the decent thing and do it quickly without shillyshallying or being even more dishonest and unreliable than she normally is.

But that is the one thing that guarantees Al two thirds and her sisters one third between them! There are plenty of alternatives were they to talk.

Bizarrely everyone seems to be in agreement :(

"sit on our hands for a while, and see what better offers may come during the lead up to the Olympics"

You're pinning your idea of booming prices on a 14 day sporting event that takes place in 6 years time???

Thems some sound fundamentals. I hear banks are guaranteeing to give you ALL your money back at the moment, plus they give you an extra 5% each year too.

The idea that hundreds of thousands of wealthy people are going to descend on London in a few years time, many of whom intend to stay, doesn't give you an inkling that they might need somewhere to live?

They will need a hotel, hostel, or B&B to stay for the duration of their visit (or will stay with friends). What makes you think any of them would be insane enough to want to stay permanently? OK, some will, insanity has not been stamped out. But there will hardly be enough of them to have a significant effect on the housing market.

Whilst he idea that they will only be there for two weeks doesn't give you an inkling they are unlikely to want to buy a house just for that?

When you go on holiday, do you normally buy a house where you are going?

Athletes are able to bring their families with them to stay for however many months it was before they withdrew the offer that - maybe - clinched the Olympics. That is a lot of hotel bills and room service.

The athletes and their families will presumably stay in some sort of purpose-built ghetto (sorry, "Olympic Village") to be erected on some derelict brownfield site which will subsequently either be dismantled, turned into a theme park, or sold off as trendy housing. So if anything, it will depress rather than boost the housing market.

The Korean team are to be hosted in New Malden. It has the largest Korean population of anywhere in the world.

Except of course for Korea.

Looking around the Royal Borough of Kingston I don't see "derelict" brownfield sites. There are prime industrial units, which could be pulled down I suppose, but then where would they remove to?

Remember the garage in a swish urban setting that I told you about some years ago? The rent that wasn't rent because we were going to call itsomething else? It is still there, worth more as a grotty garage than it could ever be as posh flats. The reason?

People need their cars fixed.