Flat negotiation, new mortgage needed?

Tommy_C_84

Hello,

I am negotiating a flat, and the seller has advised that circa 15k of work will be required - and that we have to pay for it if we want the property. We are in a weak position, as the sale price plus the cost of the work still would make the property good value (taking into account the region).

Trouble is, I already have a mortgage to the value of the property, and the cost of the work is required up front...which I don't have.

Can I apply for a new mortgage, or change the existing agreement making the new value of the property to be 'old value + works required'? I assume that it would need to be surveyed again? Effectively, that would be the new value?

Thanks all,

kingstreet

No.

You will be able to borrow a maximum percentage based on the lower of valuation or purchase price.

Lenders do not allow you to borrow more than the property is worth "to get work done."

You would have to renegotiate the purchase price upto the amount needed to repair the property, increase the mortgage you require, go through a possible revaluation, or at least have the surveyor decide if the property value will then be the new agreed price and have the vendor get the work done before completion.