Mortgage + Renovation Costs

[Tony]

Hi,
We are considering buying a property for 40k less than the mortgage amount that we were approved for however it will cost approx 40k to renovate the property. would this be a problem getting the money from the bank for both the property and the renovation as we were already approved for the total amount necessary when we were looking at a more expensive property.

Cheers
Tony

 

[liteweight]

I always thought that you could let loan approval in principle before deciding on a property but when you choose the actual property, it is this you get actual loan approval on. You might be able to negotiate with regard to renovation etc., but lenders will not generally lend extra money for stamp duty etc.

 

[beecee]

I'm not sure for 100% mortgage, but I'd imagine if you could get the house valued by the valuer as the value of the house after doing the renovations and if that's over the price of house + renovations I'd say the bank would approve. Or at least get the valuer to note the value after renovations... I know our surveyor offered to do that for us!

Note: Try to find your own surveyor who is on the approved list of valuers for the bank you are getting the mortgage with - they'll normally give the valuation for no extra charge so it'll save you over €100...