Do banks lend to cover renovations when buying an old property

[dublinflyer1]

Ive found a property on the market for €200,000. I would consider offering approx €170k.

However the property would need at least €50k put into it to modernise it.

My question is would the bank only give me 92% of the selling price or would they also allow me to borrow for the renovations?

After all I would be adding value to the house by modernising yet.

 

[sadie]

They might allow you to take a personal loan to cover the renovations but you cannot take out a mortgage more than 92% the current value of the house. For all they know you may make a botch job of any renovations and actually decrease the value of the house, so that's why they wouldn't take into consideration any future value of the house.

 

[LDFerguson]

If the bank's valuer sees your plans for renovation and agrees that they would add value to the house, you can get approval for up to 92% of the finished value, but the bank will only lend 92% of current value now and the rest in stage payments. Works would need to be supervised by an architect or engineer in practice.