Mortgage plus finance to renovate the property.

bman1970

Hi all,

I'm a newbie here and looking for some advice. We have just had an offer accepted on a property at 210k, the property however needs a bit of work doing which equates to 60k are there any mortgage companies out there that will lend the money up front to enable the work to be done?

Both Nationwide and the halifax will only allow us to finance after the work has been completed and then they will have to do a secondary valuation! Help please it's our dream home and too much of a good opportunity to throw away.

opinions4u

So you want somebody to lend you more than £210,000 on a house currently worth £210,000?

If I've got that right, then the answer is no chance.

I would expect a lender to restrict any additional loan to around 80%-85% of the value added by the renovation as well.

So if you spend £60,000 renovating and it only adds £40,000 to the value they may only lend you an additional £32,000.

Go in to this transaction with your eyes well and truly open. Your dream could become your worst nightmare!

bman1970

The work done on the property will potentially take the valuation to over 300k. We want to borrow a total of 245k. Maybe didn't explain myself very well, as discussed new to all this, sorry.