Mortgage for purchase and refurbishment

Bit of advice needed, please...

We're looking at a house that needs a lot of work, probably around the e100K mark. We've got approval in principle for up to e550K, but are having trouble getting a bank to approve us for a e450K house price and e100K project cost.

None of the banks will confirm that they'll grant us the mortgage without a full project plan, scope and cost and a valuation that confirms that the project will increase the value of the house.

We haven't put a bid in yet, as we're struggling trying to work out how high we can go, depending on what the bank may or may not give us!

Anyone gone through this before and are there any recommendations as to how we should progress?

Thanks!

Are you first time buyers? How much money do you have saved? There are limited options are banks are wary of including renovation work costs on top of the purchase price

Not first time buyers... we currently own a place each. Both places are on the market, mine is Sale Agreed, just waiting on contracts. We may end up keeping his place and renting it out, but I'm not sure if that's a help or a hindrance for the bank.

We have about 70K saved so that would probably only cover a deposit and stamp duty so we'd still need to borrow the full 100K.

Will you have any capital left when you sell your property, would your partner? Banks may or may not be in favor of hanging onto 2nd property.. depends on value/mortgage outstanding/rentable area/how much rent etc. Personally wouldn't bid on a property until contracts are at least signed by purchaser

Unfortunately, not much capital. My sale should leave us with about 10K once fees are paid. I've already counted that in the 70K. We're due to sign contracts this week or next, but it's been four weeks now and I'm slightly concerned about the time it's taking now.

If we sell his place, we may only just cover our costs, so again no capital. The risk is that we can't even sell it and cover the cost, so that's why renting it out may be the only option. The bank may consider it as a self-financing asset.

depends whether the approval in principal will still stand at that amount with hanging onto 1 property. Some banks have differing policies to others when it comes to allowing a renovation budget in mortgage amount, did you check all? Think EBS were better in the past for allowing this but now so much has changed..