want a mortgage for an unfinished property

C

catherine77

Guest
Hi was hoping somebody can help me!!! I have a sanction in principle with AIB for a mortgage - 92% of 130,000. I have put an offer on an unfinished property - needs finishing, structurally everything is done but because plumbers werent paid they took rads and boiler out of house, electrics need to be finished and pump put on well etc. About 25,000/30,000 worth of work to be done but it is still a bargain. Went back to the bank and explained the situation but the advisor had "never dealth with a situation like this" After an hour of trying to explain I needed 92,000 to buy the house and 25,000 to finish it so we could move in, he eventually made a phone call and then told me that I needed to have 8% of 92,000 (no problem) but then he told me the bank would only fund 75% of the costings to finish the house and I needed to have 25% of the figure myself as a deposit. Is this correct?? its working out that I need way more of a deposit for practically the same mortgage. can somebody advise what is the protocol for this kind of situation because I have no fate that this guy understand the situation himself!!! Help.....
 
yea, cheers was thinking of ringing that 1890 number for AIB and asking them instead as I deal with a small branch and there is nobody else there to deal with. I am really lucky enough to be given 10,000 by my parents for a deposit and now it looks like I need 15,100 just to borrow 92,000 plus 25,000 why does it differ so much to buying a regular house.... it doesnt make sense to me?? originally needed 119,600 and needed 10,400 but now I need 117,000 and they want me to have 15,100??? Whats that all about
 
The 25% deposit of the work required to "finish" the property is based on the figures they use for renovations. Other banks follow the same process.
 
It can be very difficult to get an unfinished house signed off for compliance with Building Regs by an Architect or Engineer, so it may well be unmortgeable in any case. Check all works to date have been signed off before you proceed.
 
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