Buying a house with work needed

[MoneyBall2020]

Hey folks,
Sold my house last year and currently renting.

Will be looking to purchase again next year.
If I buy a doer upper project and need to get a new mortgage for 100k for the purchase price . Can I get an extra 75k for renovation on the mortgage and if so does the renovation need to be done by a certain time or how does that work?


Or is it better to look for different loan(s) when doing the renovation work as I plan to do small jobs over 3-5years.

Note: Assumption being no issue getting the approvals.

 

[_OkGo_]

You need to provide a lot more info (see Moneymakover ) to get some meaningful feedback.

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...

www.askaboutmoney.com

But very crudely, if the property you intend to buy is worth €200k and you have €100k cash, it would make more sense to borrow €150k and retain cash to complete as much of the necessary work as possible...as long as your income permits that level of borrowing

 

[Leo]

Quite a few variables here, so the makeover might be a good idea. Will loan to value or loan to income limits come into play?

I've heard that banks can have some reluctance in taking on additional risk where the borrower has savings. Given you sold last year perhaps you will not be borrowing anywhere close to the 80% limits, and if so there shouldn't be an issue so long as you're good on the affordability calculations.

The ideal scenario is you fund ongoing work from earnings without needing to borrow, but a higher rate loan over a shorter time period might cost less in the long run. If choosing the mortgage route, you do have the option of overpaying to negate the effect of the longer repayment term, but that requires some discipline.

 

[MoneyBall2020]

Thanks,

Using the savings for some work makes sense. It will probably depend on how much needs to be done.
When I know a bit more and can provide better figures I'll submit the makeover.

Cheers for replies.