LTV Mortgage do'er upper

Balmed Out

Most houses i've been looking at have been in a good condition and not needing much work however there's one im looking at now where I like the location but theres some work to be done.
Im just wondering how are improvements considered when working at the LTV on a mortgage application.

(LTV = loan to value)
Im going to make up an example here.

I had been presuming to get a mortgage with a LTV of <60% but now im wondering as to how its worked out.

Scenario:

If I had 100k saved and I bought a house for 200k but it needed 50k of improvements.

100k is 40% of the total outlay of 250k (lets assume value of house after 50k of work is now the buying price of 200k plus 50k)

Will I still qualify for the LTV of <60% or do the bank look at me as having a 50k deposit with a LTV of 80%

tinkerbell

LTV is based on purchase price, not on the value of the house after you have made home improvements.