Do I have to have renovation budget in advance?

I'm hoping to put an offer on a house that needs about €20k - €30k of work done to it (PVC windows/doors, reflooring and some small restructre work). This money is not for decoration or furnishing and there is no major strutural work or damage that I am currently aware of.

My question is I have MAIP for up to €206k and I'm thinking of making an offer between €150k -160k but I have heard from an agent on another property that the mortgage company will only lend if I already have the renovation money in addition to my deposit.

Is this correct?

Secondly, the house has an asking price of €200k. The agent said they have an offer for the full amount but it is not firm yet. As I've been down this exact road before with this agent on another house where as far as I can figure out the other offer was a ghost and "fell through" when I wouldn't raise my own offer price, I'm wondering if anyone has information on sale price versus asking price in the current market?

I bought a house in a similar state (bought for 155k , 40k gone into it), and because the house was liveable (windows , roof , running water and power) they didn't require proof that I had the money to do the work.

However this was back in 2005, so things may have changed.

Don't know what current lending policies are ( but does anyone), but it really does depend on what sort of work is to be done.

The general situation is usually this.....

If the house needs new decor and a new kitchen, but is a structurally sound house and the lending institutions valuation is the same as your purchase price, they don't give a toss if you do it up, or leave it as it is.

If the roof is leaking, or the electrics are dangerous, or the windows as at risk of blowing in in a storm, you will have to do that work for the house to be insurable, and they may insist that you do this work ASAP so will want you to have the money to do it.

That's great, huskerdu. I was thinking this was the case but wanted a second opinion.