Renovation Mortgage

[jhegarty]

Is there any such thing as a renovation morgage ?

e.g. I but a house for €100k that needs another €100 of work done .... is it possible to do something like a build morgage with stage payments , or do I need to finance the work myself , and then get it re-morgaged with the better ltv ?

 

[Sarah W]

Depending on the current state of the property you may be able to borrow up to 90% of it's value but it would need to be habitable, have power, water and sewerage and be structurally sound. Otherwise you could borrow in stage payments as the work is carried out.

Sarah

www.rea.ie

 

[jhegarty]

Depending on the current state of the property you may be able to borrow up to 90% of it's value but it would need to be habitable, have power, water and sewerage and be structurally sound. Otherwise you could borrow in stage payments as the work is carried out.

Sarah

www.rea.ie

It would be habitable... (just about, apart for the esb been put in, it looks like it was last done up during the war (boar war that it) )

but needs , rewireing , central heating , new roof, replaster all over and an extension...

 

[Sarah W]

It will all come down to the valuers report - he/she will recommend one of the following;

1. The property is mortgageable but you must undertake to carry out XYZ works within (say) 6 months
2. The property is mortgageable but the lender is advised to retain €XXX until the following work is completed - this will involve a second inspection after which the retained funds will be released.
3. The property is unmortgageable.

In the scenario you've outlined I would guess at no. 2. If you are extending the property you should show the valuer the plans and estimates as he/she will then be able to estimate a "when finished" value and the lender will be able to use this to determine the final mortgage amount you will qualify for (subject to income and other criteria) which is easier on all parties than having to keep going back for additional funds.

Sarah

www.rea.ie

 

[jhegarty]

It will all come down to the valuers report - he/she will recommend one of the following;

1. The property is mortgageable but you must undertake to carry out XYZ works within (say) 6 months
2. The property is mortgageable but the lender is advised to retain €XXX until the following work is completed - this will involve a second inspection after which the retained funds will be released.
3. The property is unmortgageable.

In the scenario you've outlined I would guess at no. 2. If you are extending the property you should show the valuer the plans and estimates as he/she will then be able to estimate a "when finished" value and the lender will be able to use this to determine the final mortgage amount you will qualify for (subject to income and other criteria) which is easier on all parties than having to keep going back for additional funds.

Sarah

www.rea.ie

thats great , thanks for the info...