Buying a house...advice needed please

foreveradevil

Hi,

We have recently been accepted for an 80% mortagage on a house we have seen for 105k. The house is in need of modernisation, for exampke it needs a new kitchen, bathroom and heating system.

My question is, how would it work if we wanted to borrow an extra 10k to go towards the work it needs doing taking the mortgage amount to 115k?? Houses on the same street in top condition have sold for 125k so the work will add value.

Any help would be much appreciated...

Regards

Rob

GMS

If you increase the borrowing then you would increase the LTV and incur higher rtaes, if the lender agrees to the higher LTV.

You will base all figures on the purchase price, not an after works value.

Are the kitchen and bathroom functional. If not you may find a retention imposed which will mean funds held back.

beecher2

From your other thread it looks as if you wouldn't get a 90% mortgage because of defaults, so you wouldn't be able to increase your LTV to borrow money to do it up. You'd have to save up to do the work which is needed.