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Can this be done?

acs_2
acs_2 Posts: 165 Forumite
in House buying, renting & selling
If I have a purchase price of £150,000, can I take a mortgage to say £175,000 in order to spend £25,000 doing the property up, giving it a value thereafter of around £200,000.

Thanks.
To have integrity means that you don't agree with everyone you meet, nor do you succumb to pressure to be something that is in direct conflict with your core ethics.
«13

Comments

  • sharp910sh
    sharp910sh Posts: 523 Forumite
    Part of the Furniture 100 Posts Name Dropper
    No. You could before teh housing crash.
  • lincroft1710
    lincroft1710 Posts: 19,161 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    So, without any deposit, you're expecting a lender to give you a mortgage of £175K against a property only worth £150K?
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • acs_2
    acs_2 Posts: 165 Forumite
    lincroft1710 wrote: »
    So, without any deposit, you're expecting a lender to give you a mortgage of £175K against a property only worth £150K?


    No, a purchase price isn't necessarily what the property is valued at! and we have a deposit. My question was simply about being able to over finance on a property that we may be able to buy at significantly less than market value when it has been restored to good order.
    To have integrity means that you don't agree with everyone you meet, nor do you succumb to pressure to be something that is in direct conflict with your core ethics.
  • FR_262
    FR_262 Posts: 155 Forumite
    I agree with Sharp. You can't do this anymore.
  • Guest101
    Guest101 Posts: 15,764 Forumite
    Chances are no, but could you deposit 25k less?
  • acs_2
    acs_2 Posts: 165 Forumite
    Guest101 wrote: »
    Chances are no, but could you deposit 25k less?

    We could, however that would possibly leave us with a bigger mortgage repayment every month.

    This is a fine balancing act and Im really not sure which is the best way to go about things in the long run.
    To have integrity means that you don't agree with everyone you meet, nor do you succumb to pressure to be something that is in direct conflict with your core ethics.
  • Guest101
    Guest101 Posts: 15,764 Forumite
    acs wrote: »
    We could, however that would possibly leave us with a bigger mortgage repayment every month.

    This is a fine balancing act and Im really not sure which is the best way to go about things in the long run.

    If u plan to sell the repayments shouldn't be much different. What actually needs doing?
  • acs_2
    acs_2 Posts: 165 Forumite
    Guest101 wrote: »
    If u plan to sell the repayments shouldn't be much different. What actually needs doing?

    Redecoration and carpets throughout
    new boiler
    electrical rewire
    new kitchen
    two new bathrooms


    ...and its a 4 bed detached, so its not exactly a small house.
    To have integrity means that you don't agree with everyone you meet, nor do you succumb to pressure to be something that is in direct conflict with your core ethics.
  • Fishingtime
    Fishingtime Posts: 757 Forumite
    500 Posts
    acs wrote: »
    If I have a purchase price of £150,000, can I take a mortgage to say £175,000 in order to spend £25,000 doing the property up, giving it a value thereafter of around £200,000.

    Thanks.

    If you purchase for £150,000 and spend £25,000 doing it up how do you know it will then be worth £200,000
    Owing on CC £00.00 :j

    It's like shooting nerds in a barrel
  • acs_2
    acs_2 Posts: 165 Forumite
    edited 15 December 2013 at 8:28PM
    Fishingtime wrote: »
    If you purchase for £150,000 and spend £25,000 doing it up how do you know it will then be worth £200,000

    A combination of Market comparison and professional (not mine) opinion suggests that its value, when complete, would be in the region of £200-230k depending on quality of finish.

    Of course, its a risk, and it might not be...but thats a different set of choices for me to ponder.
    To have integrity means that you don't agree with everyone you meet, nor do you succumb to pressure to be something that is in direct conflict with your core ethics.
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