First time buyer.....borrow more than the purchase price

delboy2405

Hi,

Looking for some advise as my wife and I are looking to buy our first house together in Scotland.

We have enough for a 10% deposit at the moment and are currently looking at houses on the market.

If a house that we see needs work done ie New kitchen, New bathroom and the home report value is 150k and we negotiated the price to 140k. Can you still get a mortgage for 150k and use 10k for the work that needs done.

thanks

Derek

mic200202

It would be difficult to do this unless the works would be enough to justify a higher value when completed.You would need to have estimates for the works needed to provide for a lenders surveyor so he could justify a higher value when completed.

You also need to watch that a lender may hold a retention on a property that is obviously in need of works ie they may not release the full amount of mortgage until certain works are completed.This tends to happen for items the surveyor deems urgent repairs are needed.

delboy2405

thanks, just need a good idea that is a place needs work done it may not be for us.

mic200202 wrote: »

It would be difficult to do this unless the works would be enough to justify a higher value when completed.You would need to have estimates for the works needed to provide for a lenders surveyor so he could justify a higher value when completed.

You also need to watch that a lender may hold a retention on a property that is obviously in need of works ie they may not release the full amount of mortgage until certain works are completed.This tends to happen for items the surveyor deems urgent repairs are needed.

holly_hobby

The mge/LTV is based on the purchase price, less any further retention adjustments made by the lender.

In situations of serious remedial work a full retention may be made.

Hope this helps

Holly