Hi everyone, was hoping to get some advice as I am coming to purchase my first house...It would help if I give you an idea of what is going on though, just so you understand.

So basically, at the moment me and my mother live in a council property in a nice enough cul-de-sac, it is one of few council properties remaining on the road now so we have applied to the council to purchase the property.

Here is where my concern comes in:

We applied to purchase the property many years ago but the council told us to hold off due to an ongoing dispute with neighbours behind us. We have had very little dealings with it ourselves, but the neighbours behind us have their ground level about 3ft (maybe a little more) lower than our ground level. They actually have some of our land which they use as flower beds etc. It was decided that they were concerned about subsidence and wanted works to be completed to stop it from happening. In the end after much discussion between the council and the joining properties, they decided to get their own surveyor to asses the situation and we have received paperwork that states that the boundary line is sufficient for its current purpose and no works need to be completed. We have received documents for this ourselves. It seems strange that the neighbours wanted the work doing in the first place, and then after using their own surveyor, concluded that no work needed to be done. I think this is because, if we decided to go ahead with the work then they would have lost the land that is technically ours, but they are using.

Regardless I am going to get my own building surveyor to check over the property, walls and documents to make sure that everything is legitimate. My slight concern is that the council have actually taken £20k off the asking price because of the above situation and basically said it is our responsibility if anything goes wrong.

As long as I have the documentation from their surveyor that says it is fit for its current purpose, and our surveyor gives me documents to say it is all OK, and we are fully insured, I am guessing that we should be OK?

With the above in mind, I think the house has been valued very generously at approx £120k (other houses in the area are between 140 and 160k), the discount applied to us for living in a council property for a long period of time means that the value has dropped to approx £50k.

So this means I need to pay £50k for the house, and the renovation work I wanted to do is going to cost approx £50k also - it is in need of modernisation and repair. In terms of getting a mortgage, knowing the full value of the house has been put at £120k, will I get a mortgage for the full £100k I am looking for? Or will I only get a mortgage for the £50k required.

Essentially at the end of it I would like £100k in total as I would like to add an extension - replace kitchen, refit bedrooms, bathrooms etc.

Thanks in advance