First time buyer on a 90k house

Goldenarms_

Hi. I have the chance to buy a house from some relatives. They have agreed to sell it to me for 90k. The thing is it needs a lot of work doing and my question is, is there anywhere that would give me a mortgage of more than 90k? 110k would be ideal so I could pay for all the renovation.

All my savings would be going into the deposit, so don't have that much to play with right now.

Thanks in advance for any replies.

Wh05apk

Lenders will only lend up to a percentage of the value, no more, unless you are buying the property undervalue from a relative, in which case, some lenders may accept the discount as your deposit.

Cycrow

You will only get a mortgage to the value of the house (minus the deposit)

if the house is only worth 90k why would the bank pay 110k for it?

kingstreet

They are selling it to you for £90k. Is it worth more?

Goldenarms_

Thanks for the replies.

Yes it has been valued by 2 different estate agents. The 1st said 110-115k and the 2nd said 100k.

So my relatives have potentially knocked 20k or so off for me.

kingstreet

Sorry. I'm going to disagree. If an estate agent is "valuing" it at £100k to £110k it's worth around £90k, maybe £95k maximum, especially if it needs a programme of updating.

You may find you can't get a mortgage without a retention to cover essential repairs. Then you'd need extra deposit to cover the retention until you can get the work done and the retention lifted and the funds released.