Mortgage more than offer?

stressedette

Looking at putting in an offer on a property, home report value £320k. Some work needs done, including new roof etc. 

Considering putting in a low offer to reflect this. However, Decision in principle is based on home value of £320k, with £32k deposit. 

If we did put in a low offer (say £300k), would we still be able to mortgage the full home value and retain the extra £20k cash difference in borrowing, in order to fulfil home improvements? 

Or does this need to be a separate home improvement loan / remortgage agreement? 

user1977

In short no, if the agreed price is lower than the valuation then that's what the lender will use for its sums (on the basis that obviously the valuation was wrong if they couldn't get that price...).

stressedette

Thanks for clarifying!  

Bluebell1000

You'd still need a 10% deposit, so you would only have a £30k deposit instead of £32k deposit, freeing up £2k to go towards the home improvements. It's unlikely you'd be able to remortgage quickly to free up funds for renovation as you probably won't be able to get more than a 90% mortgage. 

You could look at whether taking a 95% mortgage at the start is possible, which would give you a bit more spare cash for the works needed. 

Albermarle

 Some work needs done, including new roof etc. 

There are many threads on this forum where buyers have been told by the surveyor, that a new roof could be needed.
When delving into the detail, it is often more the case that ' the roof needs some quick maintenance ( replacing missing roof tiles etc ) and that it may need a new roof at some point in the next few years'

So are you sure an expensive item like a new roof is really needed ?