# Cost of finishing house from builders finish and how to finance.



## brokeagain (10 Mar 2009)

A house has come on the market that is finished to builders finish and is on .5 acre. The kitchen and tiling will need to be done as well as fireplace and painting. The asking prince is 275K but I would put in offer for 240K. The problem is where do I get finance to finish house? Has anyone else gone down this route? 

The house is in the perfect location fo both of us for work and it is exactly what we are looking for.

How much would it cost to finish the house and where would the best place to sek a loan to finish?


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## mf1 (10 Mar 2009)

1. Ask your local friendly builder(s)/decorator(s) for a quote.
2. Armed with those, go to your bank/ broker and ask what they would lend you based on your income,savings, debts, etc.,etc. 

Based on the combined purchase price AND finish costs ( which should 'in theory' increase the value), your bank/broker should be able to  give you an idea of how much you could borrow. 

My own experience at the moment is that Banks are not lending except on a very small scale, to ( what they regard as) bullet proof borrowers, with a very, very , very low value to loan ratio - the idea  being that their exposure is very, very low, and with a strong expectation that borrowers have substantial savings to show how trustworthy/prudent/ realistic they are. 

mf


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## brokeagain (10 Mar 2009)

Thanks for your reply. Could the bank include the cost of finishing into the mortgage price based on the fact that it would increase the value of the house? or would I have to get a separate loan to finish?


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## Janman07 (10 Mar 2009)

Maybe if you could get an independent valuation to show the bank. You could then demonstrate that the value with builders finish is 240k, the value of the property completely finished is (say) 275k and you have a price of (say) 25k from a registered contractor to finish off the house.

This may help. Then again, who knows?


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## mf1 (10 Mar 2009)

It is likely that they will only lend X% of the current value - probably as little as 80%. They may be prepared to consider  lending more to complete after the purchase but it is likely that it would only be on the basis of receipts for works actually completed. 

Really, you need to talk to a broker or bank to get a more "on the ground" feeling for it. 

mf


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## angela59 (10 Mar 2009)

Hi,

The finish depends on your taste and the size of the house - you could spend anything from E50,000 to E100,000 finishing a house.  Tiling can be quite expensive with the adhesives and grouting and depending on what type of tile you go for.  It is a good time to buy things at the moment because of the sales on everywhere buying white goods etc.  To cut down on expense instead of putting laminate, semi solid wood upstairs put down carpets.   

Angela59


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## Senna (10 Mar 2009)

Is there PC sums included?  Say if there was 20k included, you could put in an offer of 240k but with the PC sums increased to 40k.

Ps. if you have a price in mind that your happy to pay, then you should keep to that price but increase PC sums.


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## brokeagain (11 Mar 2009)

Senna said:


> Is there PC sums included? Say if there was 20k included, you could put in an offer of 240k but with the PC sums increased to 40k.
> 
> Ps. if you have a price in mind that your happy to pay, then you should keep to that price but increase PC sums.


 

Sorry if this is a silly question but What are PC sums? Is that when a house goes up for sale advertised as builders finish but there is an allowance for extras such as kitchen, tiles, firplace etc...?


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## krissovo (11 Mar 2009)

angela59 said:


> Hi,
> 
> The finish depends on your taste and the size of the house - you could spend anything from E50,000 to E100,000 finishing a house.



Thats a spot on guide, you set the budget and finish it as best you can to that value.  €50k would be a reasonable finish, it can be done cheaper but then you end up with a poor finish similar to a cheap development.


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