Does anybody know of a lender that lends based on the valuation price

A

Ally2004

Registered User
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Hi,

Just wondering if anybody knows of a lender that will approve based on the valuation price and not the contract price. I bought a house last December for 320K it has since shot up to 450K it is due for completion in October. I have my approval in place for 92% as I am not a first time buyer but am just looking to see if I can borrow a bit more. Any advise would be greatly appreciated.
 
i assumed that all banks lend on loan to value ratio ...? ie when the house values at 400/450k they will give you 92% of that . but i dont think they will lend more than the purchase price ...ie if the purhcase price is 320 k they will give you 320k.
 
You can't borrow more than the contract price so you'll need to close on 92% (or 100% if you qualify) but you could either remortgage or get a top up after completion based on the market value (which will be less than similar brand new properties as Stamp Duty will now apply) - again this assumes you qualify on income.

Sarah

www.rea.ie
 
Is there a specific amount of time you have to wait for in realtion to top up's or remortgages? or can you apply straight away
 
Sarah W said:
You can't borrow more than the contract price so you'll need to close on 92% (or 100% if you qualify) but you could either remortgage or get a top up after completion based on the market value (which will be less than similar brand new properties as Stamp Duty will now apply) - again this assumes you qualify on income.

Sarah

www.rea.ie
Click to expand...

I was under the impression that you could get a loan basis on the valuation irrespective of the contract price.
 
propertyprof said:
I was under the impression that you could get a loan basis on the valuation irrespective of the contract price.
Click to expand...

Nope. Only if the property is being bought at a discount to the true value - i.e. the tenant purchase scheme whereby you can get up to 30% off the price or if you are buying from a relative at under market value. Even then you'll need to show why you are looking to borrow more than the contract price.

Sarah

www.rea.ie
 
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