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Can I get a mortgage for above the market value?
Katyy
Posts: 1 Newbie
I am buying a house from a family member. The house has been valued officially at 85,000 but we were hoping to take out 100,000 so that it would cover the renovations too. I know you can't get a mortgage for more than the house selling price but I was wondering if my family were allowed to sell it to me for 100,000 but then give the 15,000 back to me. Is this possible or even legal?
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Comments
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If it is worth £85,000 you will be able to borrow 90%, or 95%, of that £85,000.
You can't borrow more than the value of the property.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
what if it is worth 85k now, but would be worth 100k if the renovations are done? would they lend on that basis? I don't know.0
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No. No lender uses the improved value.
They would need to finance the improvements themselves, then remortgage to reflect the new value.
This has risks, if the surveyor does not feel the improvements have added as much value.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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