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mortgage top up for home improvements

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  • 09-11-2014 8:09pm
    #1
    sullydublin
    Registered Users Posts: 179 ✭✭


    Hi all,

    Looking for advice on getting a top up on our mortgage. We only bought the house last year and the value has near doubled since then. The house needs plenty of work and we are fully aware of the costs involved. We have met with our bank a few weeks back and they wanted a quote from a builder from start to finish, the problem we have is most builders that quoted us have came in expensive and without fitting of bathroom and kitchen.

    We have found a company that will build our extension up to the basic shell at a good price.
    I can source my own bathroom and kitchen. But would need to get fitters for both etc.

    Any advice would be great as we are meeting with the bank on Tuesday.

    Thanks


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    #2
    Oral Surgeon
    Registered Users Posts: 3,240 ✭✭✭Oral Surgeon


    This is tricky but not impossible...

    They will factor in all of the following;
    The % mortgage you originally took and that % of what the house is currently worth.
    Your credit rating
    Your income, disposable income and salary multiples
    Planning permission if needed
    A fixed price contract with a builder for a finished build (they will not want to contribute to a build if it not finished when the money runs out as then you can't live in it or they can't sell it easily if it comes to that...)
    A projected value based on the works involved (ie, will the works actually add value to the build, you can put a €50k extension or a €50k kitchen, one adds value the other doesn't...)
    What amount of money you are bringing to the renovations
    The ability to repay the extra amount on top of your existing mortgage...

    Are you stretched on your current mortgage or comfortable?? That will give you a good idea....

    Let us know,
    OS
    sullydublin wrote: »
    Hi all,

    Looking for advice on getting a top up on our mortgage. We only bought the house last year and the value has near doubled since then. The house needs plenty of work and we are fully aware of the costs involved. We have met with our bank a few weeks back and they wanted a quote from a builder from start to finish, the problem we have is most builders that quoted us have came in expensive and without fitting of bathroom and kitchen.

    We have found a company that will build our extension up to the basic shell at a good price.
    I can source my own bathroom and kitchen. But would need to get fitters for both etc.

    Any advice would be great as we are meeting with the bank on Tuesday.

    Thanks


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    #3
    sullydublin
    Registered Users Posts: 179 ✭✭sullydublin


    Oral Surgeon wrote: »
    This is tricky but not impossible...

    They will factor in all of the following;
    The % mortgage you originally took and that % of what the house is currently worth.We bought the house for arguments sake for €110K its now worth €210k with a mortgage of €90k over 26 Years
    Your credit rating
    Never any hassle paying back loans etc.

    Your income €60K together, disposable income and salary multiples
    Planning permission if needed

    A fixed price contract with a builder for a finished build (they will not want to contribute to a build if it not finished when the money runs out as then you can't live in it or they can't sell it easily if it comes to that...)
    A projected value based on the works involved (ie, will the works actually add value to the build, you can put a €50k extension or a €50k kitchen, one adds value the other doesn't...)
    What amount of money you are bringing to the renovations
    The ability to repay the extra amount on top of your existing mortgage...

    Been told by an estate agent that with the proposed works done the value should go up another €60K

    Are you stretched on your current mortgage or comfortable?? That will give you a good idea....Very comfortable as you can imagine on a small mortgage

    Let us know,
    OS

    Let me know what you think .


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    #4
    Oral Surgeon
    Registered Users Posts: 3,240 ✭✭✭Oral Surgeon


    sullydublin wrote: »


    Let me know what you think .

    I'm not really sure how to apply the sums to your situation to be honest, I just know that my figures were ok. Sorry, maybe someone more knowledgeable here will do the sums for you...

    You are missing some important figures though, the cost of renovation and how that extra repayment would impact on your disposable income etc....

    Good luck with it


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    #5
    sullydublin
    Registered Users Posts: 179 ✭✭sullydublin


    Oral Surgeon wrote: »
    I'm not really sure how to apply the sums to your situation to be honest, I just know that my figures were ok. Sorry, maybe someone more knowledgeable here will do the sums for you...

    You are missing some important figures though, the cost of renovation and how that extra repayment would impact on your disposable income etc....

    Good luck with it

    All went good with the bank this week and should have conformation by next week


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    #6
    sullydublin
    Registered Users Posts: 179 ✭✭sullydublin


    Banking looking for confirmation that we don't need planning permission and still won't say if we have got the loan any advice ?

    Looking to get the builder to get confirmation on planning.


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    #7
    Oral Surgeon
    Registered Users Posts: 3,240 ✭✭✭Oral Surgeon


    sullydublin wrote: »
    Banking looking for confirmation that we don't need planning permission and still won't say if we have got the loan any advice ?

    Looking to get the builder to get confirmation on planning.

    I'm no expert but I think that by the newer building regulations you will need a supervising architect or engineer. You should get them to confirm that the extension is under 40sqm, to the rear etc etc and that it will be exempt from planning etc....


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    #8
    sullydublin
    Registered Users Posts: 179 ✭✭sullydublin


    Oral Surgeon wrote: »
    I'm no expert but I think that by the newer building regulations you will need a supervising architect or engineer. You should get them to confirm that the extension is under 40sqm, to the rear etc etc and that it will be exempt from planning etc....

    I know the builder has an engineer who he works with that signs off on all aspects of the construction. Just wondering why only now are the bank looking for this when it could of been handed in weeks ago. We are only building a 25sqm extension. I'm starting to regret this :mad:.


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    #9
    Oral Surgeon
    Registered Users Posts: 3,240 ✭✭✭Oral Surgeon


    sullydublin wrote: »
    I know the builder has an engineer who he works with that signs off on all aspects of the construction. Just wondering why only now are the bank looking for this when it could of been handed in weeks ago. We are only building a 25sqm extension. I'm starting to regret this :mad:.

    The bank will happily give €100million to some dude in a suit but wreck you head about small silly stuff.... that's unfortunately the way it is... I'm in the middle of a big renovation and can't believe some of the questions I have been asked.....


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    #10
    sullydublin
    Registered Users Posts: 179 ✭✭sullydublin


    Oral Surgeon wrote: »
    The bank will happily give €100million to some dude in a suit but wreck you head about small silly stuff.... that's unfortunately the way it is... I'm in the middle of a big renovation and can't believe some of the questions I have been asked.....

    Getting the original mortgage was an easy process. Its been dragging on now for nearly 5 weeks from the first meeting. Just hope the builder doesn't get fed up as we were hoping to start before Christmas.


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    #11
    mickman
    Closed Accounts Posts: 4,661 ✭✭✭mickman


    The bank want confirmation that it doesnt require planning for obvious reasons. If they gave you the money without confirming this and it turned out that you did need planning and couldnt get it then their money would be basically lost as you wont be able to sell the house

    Get an engineer that the builder works with to write a letter saying no planning required and to stamp it

    Job done


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    #12
    sullydublin
    Registered Users Posts: 179 ✭✭sullydublin


    mickman wrote: »
    The bank want confirmation that it doesnt require planning for obvious reasons. If they gave you the money without confirming this and it turned out that you did need planning and couldnt get it then their money would be basically lost as you wont be able to sell the house

    Get an engineer that the builder works with to write a letter saying no planning required and to stamp it

    Job done

    My builder has emailed them stating we are exempt and he will have all works signed off by his engineer. Hopefully they won't need anything else.


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    #13
    mickman
    Closed Accounts Posts: 4,661 ✭✭✭mickman


    sullydublin wrote: »
    My builder has emailed them stating we are exempt and he will have all works signed off by his engineer. Hopefully they won't need anything else.

    They might insist on the engineer doing it as a builder isnt really qualified to decide on planning matters and they will want a letter on headed paper etc


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    #14
    martinn123
    Registered Users Posts: 2,300 ✭✭✭martinn123


    sullydublin wrote: »
    My builder has emailed them stating we are exempt and he will have all works signed off by his engineer. Hopefully they won't need anything else.

    The Builder is not qualified to give such an opinion, you need an Architect, Arch. Tech, or an Engineer, to issue a Cert that Planning is exempt.

    Also as an aside you should really have your own Engineer, to sign off on all works.
    If there is a dispute, an Engineer, working for the Builder is not watching YOUR back

    Have you insured the Builder will register the works for the '' Home Improvement Incentive'' so you get the VAT back?


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    #15
    sullydublin
    Registered Users Posts: 179 ✭✭sullydublin


    martinn123 wrote: »
    The Builder is not qualified to give such an opinion, you need an Architect, Arch. Tech, or an Engineer, to issue a Cert that Planning is exempt.

    Also as an aside you should really have your own Engineer, to sign off on all works.
    If there is a dispute, an Engineer, working for the Builder is not watching YOUR back

    Have you insured the Builder will register the works for the '' Home Improvement Incentive'' so you get the VAT back?


    Hi Martinn the builder is fully registered and is doing the "home improvement incentive" and is the only builder that we got a quote off who is the only one out of 5.

    We have been out to see his work which ticks all the right boxes and he has told us the engineer is fully competent and will only sign off when he is happy. He has a advised us that we can use our own engineer if we wish.

    The bank won't give us an answer in principal until we get conformation that we don't need planning which i found very odd considering we will have to pay someone to do that for us.

    How much would an engineer cost roughly would you know?

    Thanks


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    #16
    mickman
    Closed Accounts Posts: 4,661 ✭✭✭mickman


    sullydublin wrote: »
    Hi Martinn the builder is fully registered and is doing the "home improvement incentive" and is the only builder that we got a quote off who is the only one out of 5.

    We have been out to see his work which ticks all the right boxes and he has told us the engineer is fully competent and will only sign off when he is happy. He has a advised us that we can use our own engineer if we wish.

    The bank won't give us an answer in principal until we get conformation that we don't need planning which i found very odd considering we will have to pay someone to do that for us.

    How much would an engineer cost roughly would you know?

    Thanks

    Well if the builder has an engineer then get him to write the letter.if you are using him to check the work then he might just bundle it into the price

    Otherwise 200 euro


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    #17
    martinn123
    Registered Users Posts: 2,300 ✭✭✭martinn123


    sullydublin wrote: »
    Hi Martinn the builder is fully registered and is doing the "home improvement incentive" and is the only builder that we got a quote off who is the only one out of 5.

    Good News, out of interest, did the Bank insist at any time that your quotes should confirm registration for this scheme, if it's 1 from 5 sounds like a lot of Builders are not bothering with it.

    Not aware which Bank you are with, but others might note B of I have a fund available for extentions etc, under this Initiative.

    http://www.boards.ie/ttfthread/2057072122
    We have been out to see his work which ticks all the right boxes and he has told us the engineer is fully competent and will only sign off when he is happy. He has a advised us that we can use our own engineer if we wish.

    The conflict is who is the Engineer working for, you may be paying his Fee, but if he get's lots of work from the Builder, and something is amiss, where does his loyalty lie.
    The bank won't give us an answer in principal until we get conformation that we don't need planning which i found very odd considering we will have to pay someone to do that for us.

    How much would an engineer cost roughly would you know?

    Thanks

    Not surprising really, as they are Lending against the Security of the house, it's not just the 25 SqM that needs to be considered, there are other factors, ( previous extentions, remaining garden size, building on a Boundary etc etc ) that only an Insured Architect, Engineer can certify.

    If it were me I would employ my own Professional, to answer the Banks questions regarding Planning, keep an eye on the works, and provide the necessary Certification on completion.
    Get a few quotes for this.


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