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extra from the banks!!

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  • 09-04-2013 8:19pm
    #1
    lollyb85
    Registered Users Posts: 10 ✭


    hi all, we goin lookin at a builders fin house on fri bout 1800 sq feet. 2nd fixed, plastered, but all to be put into it. On net for 150,000 but been on market 5yrs (considerable drops in last couple months). Hoping to get it at a good price if we like it. jus wonderin does ne1 know if the banks are lending a bit extra (5-10,000) on top of the mortgage amount. Jus wondering for improvements on the house. any help on this topic would be greatly apprciated...


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    #2
    ted1
    Registered Users Posts: 23,524 ✭✭✭✭ted1


    lollyb85 wrote: »
    hi all, we goin lookin at a builders fin house on fri bout 1800 sq feet. 2nd fixed, plastered, but all to be put into it. On net for 150,000 but been on market 5yrs (considerable drops in last couple months). Hoping to get it at a good price if we like it. jus wonderin does ne1 know if the banks are lending a bit extra (5-10,000) on top of the mortgage amount. Jus wondering for improvements on the house. any help on this topic would be greatly apprciated...

    We were told last May that they would onlu give the mortgage amount, and any extra would need to be as a personal loan. which they had no problem giving (10.5% V 3.25% ) your damn sure they had no problem.


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    #3
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    The only way you can borrow additional monies on the mortgage is if the property will increase in value once the works are completed, with the overall loan to value remaining within the banks policy. When the Bank's Valuer carries out the initial valuation you indicate the works you are going to do and ask what the value on completion will be. Bear in mind that €1 spent does not = €1 added value. If the value will be increased enough you may have scope to borrow additional finance and have a second stage drawdown. For example you are looking to buy a house for €150k & put €20k worth of works into it. The valuer decides that on completion of the works the property will be worth €165k. The bank give you 92% of the initial €150k and on completion of the works there is scope to drawdown another €10k or so because your total borrow is €138k + €10k = €148k versus value on completion of €165k so overall LTV is 89%.


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    #4
    foleypio
    Banned (with Prison Access) Posts: 138 ✭✭foleypio


    killers1 wrote: »
    The only way you can borrow additional monies on the mortgage is if the property will increase in value once the works are completed, with the overall loan to value remaining within the banks policy. When the Bank's Valuer carries out the initial valuation you indicate the works you are going to do and ask what the value on completion will be. Bear in mind that €1 spent does not = €1 added value. If the value will be increased enough you may have scope to borrow additional finance and have a second stage drawdown. For example you are looking to buy a house for €150k & put €20k worth of works into it. The valuer decides that on completion of the works the property will be worth €165k. The bank give you 92% of the initial €150k and on completion of the works there is scope to drawdown another €10k or so because your total borrow is €138k + €10k = €148k versus value on completion of €165k so overall LTV is 89%.

    can you receive any tax relief on said works or have they all been withdrawn since the Budget


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    #5
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    foleypio wrote: »
    can you receive any tax relief on said works or have they all been withdrawn since the Budget

    No, withdrawn since 31/12/12


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