Hi all,
hope someone can help with some issues that I am having and headaches I have.
Situation: currently living in a semi-detached dormer bungalow worth between €260-280k (presumably). We have about 160k left on the mortgage.
Vision: we would like to buy a site (about 3/4 or 1acre) and have seen one for 200k but I think we could probably negotiate lower than that. We have done some basic homework - spoken to friends, read sites like this etc. and we believe that the building costs could be kept to around 175-200k this giving us an overall requirement to come up with about 365k on average in total (assuming we get the site for between 150-175k).
Problem: We are unclear how the whole process of this works. Will a bank lend us money if we use our own house as collateral against any loan to buy the land and commence any work? We have two kids and would want to stay in our current house for as long as we could without having to sell. It would seem that we could get a mortgage for about 350k in total and I was wondering, with us only having 160k on our current mortgate, how we can go about trying to at least initially, get the money together for the site. We dont have a great deal of savings - just cleared credit cards and loans and will only have between 5-10k in savings. I would even be happy to purchase the land now and start building next year if we could even manage that - problem of course with that is, we will be paying for land that is giving us back nothing.
Anyway, I am sure this is a common dilemma for people but would appreciate any advise people might have.
hope someone can help with some issues that I am having and headaches I have.
Situation: currently living in a semi-detached dormer bungalow worth between €260-280k (presumably). We have about 160k left on the mortgage.
Vision: we would like to buy a site (about 3/4 or 1acre) and have seen one for 200k but I think we could probably negotiate lower than that. We have done some basic homework - spoken to friends, read sites like this etc. and we believe that the building costs could be kept to around 175-200k this giving us an overall requirement to come up with about 365k on average in total (assuming we get the site for between 150-175k).
Problem: We are unclear how the whole process of this works. Will a bank lend us money if we use our own house as collateral against any loan to buy the land and commence any work? We have two kids and would want to stay in our current house for as long as we could without having to sell. It would seem that we could get a mortgage for about 350k in total and I was wondering, with us only having 160k on our current mortgate, how we can go about trying to at least initially, get the money together for the site. We dont have a great deal of savings - just cleared credit cards and loans and will only have between 5-10k in savings. I would even be happy to purchase the land now and start building next year if we could even manage that - problem of course with that is, we will be paying for land that is giving us back nothing.
Anyway, I am sure this is a common dilemma for people but would appreciate any advise people might have.