Mortgage and remortgage help!

Matthew_Lewis

Hi all I'm in the process on buying a house and was just after a bit of Info.
The house I might be buying is worth 140k but I can get it for 80k but it needs alot of work, outdated and damp but the outside construction needs about 10k.
I can get the mortgage for the property value but these days you. Any add on money for home improvements, I can get the needed stuff done exterior bits which will cost about 10k so was wOndering if I can remortgage to get 20-30k for further home improvements and how long after can I remorgage,
Thanks for reading Matt.

Thrugelmir

What will it be worth fully renovated?

holly_hobby

The outdated bit won't affect the survey value as much as any retention in relation to essential works, and the results of the Damp & Timber report. (have you had a survey already done ? do you know of any other essential works ?)

You need to hold a mge for at least 6 - 12 mths (depends on lender) before you can apply for a further advance (FA). (subject of course to further status and income checks being satisfied).

Take one step at a time, see if you can obtain the mge required (based on your income, deposit, survey and credit record), and if there are any retentions placed on borrowing as a result of survey (which make significantly affect the exercise), then look at a FA when appropriate.

A whole of market/independent mortgage broker will assist in sourcing the most suitable lender and product for your requirements, to get the ball rolling.

Hope this helps

Holly

Matthew_Lewis

House when fully renovated is worth up to 150k I believe thanks for the replies!
Hobby had a survey yet just a family builder look at the property because I the dampness and rotting of skirting boards.

holly_hobby

Yep, that will be an essential works, quite how much work is reqd will be revealled by the D&T report the surveyor will request.

If the house also needs a re-wire, then that will also be an essential work, as will any roof and/or movement issues that the surveyor spots - all following a specialist report on each factor thought to possibly pose an issue by the surveyor.

Unfortunately, a builder (no matter how experienced) isn't a qualified surveyor or expert in the various fields, so my advice to you, would be survey wise, to at least obtain a homebuyers report or a full struct. survey (if funds permit) - as you don't want to be buying a money pit, with a list of never ending issues that keep revealling themselves .... as if anything is missed by the surveyor which later becomes an issue, you have some recourse (which only the lender would have on a basic survey).

If there is a retention, the general way of going about it, is having the vendor do the works, obv in this case you're getting it cheaper because it needs updating (not sure if the price is also reflective that the Vendor is aware and reduced it futher due to the damp issues ?). So the alternative route is to buy it with the mge offered, with you funding the difference of the retention to complete the sale. Then following completion of the reqd works, you may approach the lender to release the retention, which will require a re-valuation + fee, and if the surveyor is happy that the works are completed to reqd standards - the monies released (lenders look for this to occur within a 6 mth timeframe, outside of this, they may well peform full status checks again, indeed a futher advance or change of lender via a remortgage, would demand such checks in any event).

Naturally essential works such as Damp treatment, electrics, structual repairs etc, will require the appropriate certificate of gte, works and completion by a qualified practitioner whom completed the works (as although you used to be able to have the works done by an individual whom was not a member of the relevant professional association, if it was inspected and signed off by a member (with the provision of the reqd cert of works), this was generally ok, however I think that this is no longer permitted .... but an active adviser will confirm that).

Hope this helps

Holly

bigadaj

Get a structural engineer. Into give an assessment, the surveyor will just refer to one any way and you can avoid the surveyors fees on top.

holly_hobby

Following on from BigA's. post, the structual engineer will specifically advise on movement/foundation and strucutal issues (clues in the name really !!) - and high areas of cost. Further to which, you may also wish to consider having the D&T survey/elecs etc, peformed pre any mge application too - to give you an idea of whether its actually worth proceeding or not, given the results of the reports.

Holly