Mortgage covering refurbishment costs

[heisenberg]

Is it possible, in post property bubble burst, to obtain a mortgage that covers some refurbishment costs?

I am a first time buyer interested in purchasing a property that is essentially very outdated which would require fitting of a kitchen, bathroom, plumping works, insulating and overall redecoration. Can a mortgage cover, at least partially, some of these costs?

The works would undoubtedly increase the value of the house as it is currently in poor condition and I would not consider it in a liveable state. Is this something a bank would even consider?

 

[Dave_Curry_IMC]

Yes. Some banks will lend up to 90% of refurbishment costs (within overall LTV lending rules). Others will lend up to 75%. A key consideration is, how much value will the works add to the property? If the increased value is commensurate with the refurbishment costs, you could potentially borrow up to 90% of the total purchase price + refurbishments. It would be important to have a reasonable buffer there, in case the bank's valuer places a lower valuation on the property than anticipated in their initial or final valuation.

Best Regards,
Dave Curry, Irish Mortgage Corporation
https://ie.linkedin.com/in/davecurryirl