Borrowing extra..

Zoetoes

I am in the middle of the mortgage process with Halifax via a broker and want to borrow an extra 7.5k for home improvements, originally the broker advised me to give a quote in which I did but then Halifax advised him that it needs to be invoices.

Anyone I ask has said that an invoice is once the work has been done and I can't get the work done until I have the funds!

Just wondering if billheads would be accepted? The quote I gave in was a Homebase one so wondering if they just don't accept the usual ones that peoples can get hold of easily?

I actually want my garden landscaping as part of the improvements and am hoping this would be accepted as home improvements, I don't actually want it doing until spring though but if I have to have an invoice does that mean I need to get it done now?

Has anyone had the same issues with this and what would you suggest?

Yorkie1

Price of house?

Amount you've originally applied to borrow?

Revised amount you'd like to borrow?

Is this a house purchase or remortgage?

Zoetoes

Yorkie1 wrote: »

Price of house?

Amount you've originally applied to borrow?

Revised amount you'd like to borrow?

Is this a house purchase or remortgage?

Value £105,000

Buying for £52,500

Asked to borrow £60,000

It is right to buy house purchase

Thanks

kingstreet

Have you obtained council agreement to borrowing more than the discounted purchase price?

Landscape gardening is likely to be viewed as a smokescreen, with the extra borrowing being used for a new car, holiday etc.

Zoetoes

kingstreet wrote: »

Have you obtained council agreement to borrowing more than the discounted purchase price?

Landscape gardening is likely to be viewed as a smokescreen, with the extra borrowing being used for a new car, holiday etc.

No, why would I need to do that?

The garden is on my list to do because it's split level but the top level is just a messy hill and I wanted someone to come in with a good idea, maybe woodblocks, decking, anything!

Senior_Paper_Monitor

For extra borrowing (for home improvements) there is usually a requirement for:
1) The Council to agree to a 'deed of postponement' against the additional borrowing (or) an indemnity insurance protecting the excess of the loan/clawback total.
2) Detailed quotes for specific 'fixed/non removable' home improvements - the detail required varies on lender/amount involved and some lenders will use retention until works have been completed.

Although we process 'right to buys' by the dozen I have never had one with extra borrowing for landscaping - it is certainly one I would be floating past underwriters first (or to one of the less demanding on details of works).

I suspect that the documents being asked for are 'pro-forma invoices'.

kingstreet

What SPM said.

Seek council approval before you do anything else. You are trying to borrow into its equity in the property.

Zoetoes

Senior_Paper_Monitor wrote: »

For extra borrowing (for home improvements) there is usually a requirement for:
1) The Council to agree to a 'deed of postponement' against the additional borrowing (or) an indemnity insurance protecting the excess of the loan/clawback total.
2) Detailed quotes for specific 'fixed/non removable' home improvements - the detail required varies on lender/amount involved and some lenders will use retention until works have been completed.

Although we process 'right to buys' by the dozen I have never had one with extra borrowing for landscaping - it is certainly one I would be floating past underwriters first (or to one of the less demanding on details of works).

I suspect that the documents being asked for are 'pro-forma invoices'.

Thanks.

I still don't understand the council bit
Wouldn't the broker know about this? Nothing has been mentioned.

I ran the landscaping one past the broker and he seemed to think it would be ok but then again I can't quite get to the bottom of what I do actually need.

If the invoice says for work to be carried out once funds in place will that suffice?

The only other option is if I get the work done then put the invoice in but I'm worried about doing that in case there's a problem getting the funds and I have to then find the cash to pay for the work. Also, I was hoping to get for eg a toilet and sink from B&Q then get someone in to fit it, is this still possible giving receipts in etc?

Zoetoes

kingstreet wrote: »

What SPM said.

Seek council approval before you do anything else. You are trying to borrow into its equity in the property.

Ah now I understand (I think), the equity is not mine to borrow into until sale has gone through?

Zoetoes

The only other thing I could do is borrow the extra later on, I saw on Halifax website that after 6 months I could apply to borrow a bit more.

kingstreet

Yes and you would still require council permission to borrow more during the pre-emption period, five years from completion.