Is is easy to get a mortage to cover work not yet done on a house when
you buy the house, or do you need to use a bridging loan ? Obviously
the mortage people would have to be convinced that your plans will
raise the value of the house sufficiently.
Simon.

In article . com,
wrote:
Is is easy to get a mortage to cover work not yet done on a house when
you buy the house, or do you need to use a bridging loan ? Obviously
the mortage people would have to be convinced that your plans will
raise the value of the house sufficiently.

Think it might depend on what percentage of the house's valuation the
mortgage is for. But I can't see them lending more than they could get
back if things go pear shaped.

--
*I want it all and I want it delivered

Dave Plowman London SW
To e-mail, change noise into sound.

wrote:
Is is easy to get a mortage to cover work not yet done on a house when
you buy the house, or do you need to use a bridging loan ? Obviously
the mortage people would have to be convinced that your plans will
raise the value of the house sufficiently.

Depends a bit on the lender. Also, of course, on how much you are
borrowing relative to the present value of the house. Having some
essential work done may be a condition of the mortgage and they may only
release the money in stages with proof of the work having been done



--
David Clark

$message_body_include ="PLES RING IF AN RNSR IS REQIRD"

On 21 Sep 2005 03:21:18 -0700, wrote:

Is is easy to get a mortage to cover work not yet done on a house when
you buy the house, or do you need to use a bridging loan ? Obviously
the mortage people would have to be convinced that your plans will
raise the value of the house sufficiently.
Simon.

They told me three years ago now that to borrow more money to renovate
the house I had to renovate it first to raise it's "value".... :-)
Doh!

Mark S.

I mean in a situation such as:
house value 110,000
mortage value 130,000
spend on renovations 25,000
new house value: 150,000
i.e. the mortgage is worth more than the house at some stage.
Simon.

I mean in a situation such as:
house value 110,000
mortage value 130,000
spend on renovations 25,000
new house value: 150,000
i.e. the mortgage is worth more than the house at some stage.


Two chances really. Slim and none!

Peter Crosland

In article . com,
says...
Is is easy to get a mortage to cover work not yet done on a house when
you buy the house, or do you need to use a bridging loan ?

I think you'd have to remortgage your equity in the property rather than
get a bridging loan, and you'd probably want to make sure that your
insurance covered you for damage that might be caused by the proposed
work going badly wrong.

wrote in message
oups.com...
I mean in a situation such as:
house value 110,000
mortage value 130,000
spend on renovations 25,000
new house value: 150,000
i.e. the mortgage is worth more than the house at some stage.
Simon.

No chance, I would say. If it were

House value 130,000
Mortgage 110,000
You might get 20k to spend

wrote:
Obviously
the mortage people would have to be convinced that your plans will
raise the value of the house sufficiently.

If the current equity is bigger than your debt and you can afford
the payments (according to their criteria) they'll 'ave yer arm orf.

wrote:
I mean in a situation such as:
house value 110,000
mortage value 130,000
spend on renovations 25,000
new house value: 150,000
i.e. the mortgage is worth more than the house at some stage.

Not a chance I'd say. A mortgage is cheaper han a personal loan becuase
the lender has the security of a first charge on the property. They will
only lend as much as they are confident of recovering in the case of a
forced sale.


--
David Clark

$message_body_include ="PLES RING IF AN RNSR IS REQIRD"

DJC wrote:
wrote:
I mean in a situation such as:
house value 110,000 ----
mortage value 130,000 ----
spend on renovations 25,000
new house value: 150,000
i.e. the mortgage is worth more than the house at some stage.

Not a chance I'd say.

Given *this* information, I agree!

Chris Bacon wrote:
wrote:

Obviously
the mortage people would have to be convinced that your plans will
raise the value of the house sufficiently.


If the current equity is bigger than your debt and you can afford
the payments (according to their criteria) they'll 'ave yer arm orf.

Well maybe. I enquired of as BS in March if they would lend around 20%
of my property's value, (moving the mortgage from another lender, with
bit extra borrowed for improvements). Its taken the until last week to
send out their offer document. I've now finished most of the work and by
the time I have the tuits to do the rest I will also have the cash. *ankers!

--
David Clark

$message_body_include ="PLES RING IF AN RNSR IS REQIRD"

On 21 Sep 2005 03:21:18 -0700, wrote:

Is is easy to get a mortage to cover work not yet done on a house when
you buy the house, or do you need to use a bridging loan ? Obviously
the mortage people would have to be convinced that your plans will
raise the value of the house sufficiently.
Simon.

They will only normally lend a percentage of the value of the house,
where the percentage is 100% or less.

Some lenders will lend 110%, but at a price, as you can get 0% credit
cards of 20K+ for 9+ months, these are much cheeper.

When the owkr is done, if you can convinve the morguage people the
value of the property has gone up, you can transfer the loan from the
credit card, (who will suddenly want 25%) to the morguage. However its
not always eacy to convince them the value has gone up.

Rick