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.

sm_jamieson@hotmail.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.


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

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On 21 Sep 2005 03:21:18 -0700, sm_jamieson@hotmail.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.
>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.

In article ,
    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        dave@davenoise.co.uk           London SW
                  To e-mail, change noise into sound.

>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 , 
sm_jamieson@hotmail.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 
news:1127304178.722408.182380@g14g2000cwa.googlegroups.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

sm_jamieson@hotmail.com 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.

sm_jamieson@hotmail.com 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

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DJC wrote:

> sm_jamieson@hotmail.com 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:

> sm_jamieson@hotmail.com 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

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