Renovation of rental property

T

trek

Guest
Approximately 5 years ago I inherited a run down property which needed some renovations on the proviso that a favourite niece of the deceased received a lump sum from myself of £30K. As I was building my own house at the time this 30k came out of my mortgage.
I am now looking to get a loan/mortgage of €60K to renovate the inherited property. My local BoI Manager has recommended a home improvement mortgage as I will incur only €222 fees. This is effectively like a 2nd mortgage. He stated that to top up my existing mortgage will incur solicitors fees of approx 1%.
After my meeting with him I am thinking of fixing my current BoI mortgage for 4 years at 3.65% as he expects mortgages to rise soon and to take out the home improvement mortgage at the introductory variable rate.
Does this make sense or is there other alternative ways of financing the renovation? I have noticed some threads about reducing your home mortgage as mortgages on investment properties have greater tax benefits. Any help would be appreciated.
 
Trek,

I assujme you will be renting the property? It doesn't matter what type of mortgage(or whatever the bank calls it) you use to renovate the property. Once the money is used to renovate the property and the property is rented then the interest of the renovation mortgage can be offset against the rental income.
 
Bear in mind that pre letting expenses are not allowable for tax purposes.
 
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