Will Bank lend to finish a house?

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Alana55

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Hello there,

Hoping someone can give us some advice here! My husband and I are considering buying a house that's at a builders finish at the moment. Supposedly the builders of this house are gone bust and its now owned by the bank (not sure which one though). We would hope to get a good deal on it but we would need to extend the mortgage to cover tiling, bathrooms, kitchen etc. Would the banks cover this in the current environment? The overall amount we would be looking for would be well under what we could get approved for.....

Just wondering would they just cover the basics or maybe give us a bit more to kit the place out?

Would love a heads up before we approach them directly!

Thanks in advance :)
 
Hi Alana, as far as I know the bank will lend extra money. It depends on the bank too. You should get in contact with a good broker who deals with this sort of stuff day in day out. About 8 months ago I was considering buying a run down house worth about 100k and putting 40k into it. My broker told me it wasn't an issue getting the extra money included in the mortgage.

If a bank hold the deeds to the house as security and there is no loan then you are in a good position to get a good price. If the seller needs to get a personal loan for the difference between the mortgage and what you offer then you may run into problems.
Hopefully it's bos that are the bank involved as they are beginning to let property's go in a timely fashion.

Ask the estate agent who the bank/seller is and if there is any loans outstanding.
 
The total loan needs to be well below the finished value of the house, I would imagine at max 80% loan to value.
 
Hi there,

Thanks for the replies! Will check with the EA who exactly the seller is and if there are any loans outstanding - the builder if a big player though and has lots of houses so not sure what we are dealing with....

If the banks do agree to lend the extra to finish the house I wonder will they want lots of quotes and paperwork to back up every purchase or will it be a case of agreeing a reasonable sum that may be as per the terms suggested by wbbs and letting us off to spend it as we see fit?

Anyhow appreciate the advice :)
 
I would imagine you will have to produce quotes and normally the extra funds above the house purchase cost would be held back until the work is done and confirmed by the valuer.
 
BOBSKINS said:
Ask the estate agent who the bank/seller is and if there is any loans outstanding.
Click to expand...

Would it be the norm for the estate agent to give this information? Just asking because my sister is looking at a house at the moment that a bank is selling but the estate agent won't tell her which bank it is.
 
Have you savings? Would you not use some of them as the money for the finishes on the house and then borrow the rest to buy the house. It would save all the hassle of having to produce quotes etc.
 
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