Doin up a run-down house

[moneyhoney]

Myself & the OH are thinking about buying a run-down house in Dublin to do up. Have family in the trade so will get supplies at cost & pay family for labour.

My question is, when we apply for a mortgage do we apply for the purchase price plus what we think we'll need to do the work and draw down in stages? How does it usually work?

Thanks.

 

[Raskolnikov]

My question is, when we apply for a mortgage do we apply for the purchase price plus what we think we'll need to do the work and draw down in stages? How does it usually work?

Now that we're in a credit crunch, no bank will lend you the value of a property, plus the renovation costs, unless you had the equity in your own home to use as collateral.

Mighrt be helpful if you told us the cost of the property you're looking at and the cost of renovating it.

 

[Simeon]

Myself & the OH are thinking about buying a run-down house in Dublin to do up. Have family in the trade so will get supplies at cost & pay family for labour.

My question is, when we apply for a mortgage do we apply for the purchase price plus what we think we'll need to do the work and draw down in stages? How does it usually work?

Thanks.

And what are you going to do with the property once done up? If you tell them you are going to sell it ....... you'll get the bum's rush. For living in it maybe. For renting? You'ld want to skimp on your spend to get a rental that would cover you ....... thereby defeating the objective.

 

[moneyhoney]

Re: Doing up a run-down house

We want to live in the house - it's not an investment.

We've about €40k in savings & I have about €50k equity in my own place.

We'd be looking to borrow a total of €350k - found a house for €250k & estimate €100k for work. Please bear in mind these are estimates & it's more the process I am interested in.

Our combined annual income is €120k. No other borrowings. Except my mortgage which is €900/month and I would plan to rent my place out and can easily cover any shortfall in the rent.