Do banks lend to cover renovations when buying an old property

dublinflyer1

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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.
 
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.
 
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.
 
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