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renovating a 2 bed terrace...

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  • 05-04-2007 2:33pm
    #1
    coluter
    Closed Accounts Posts: 21 ✭


    I am hoping to get on the property ladder and am planning on buying a 2 bed old terrace property with a mate of mine and doing it up. We have been approved for a mortgage of 395,000 which would get us the place. The place in fact will most likely be about 350000. My question is, does anyone have any advice how we get our hands on cash to do it up baring in mind we will require a mortgage 45k below what we were approved for. We would most likely need to put about 20k into it. We have 10k saved which would have to be go on stamp duty...

    any advice would be really appreciated, cheers...


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    #2
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    coluter wrote:
    I am hoping to get on the property ladder and am planning on buying a 2 bed old terrace property with a mate of mine and doing it up. We have been approved for a mortgage of 395,000 which would get us the place. The place in fact will most likely be about 350000. My question is, does anyone have any advice how we get our hands on cash to do it up baring in mind we will require a mortgage 45k below what we were approved for. We would most likely need to put about 20k into it. We have 10k saved which would have to be go on stamp duty...

    any advice would be really appreciated, cheers...


    I dont think they would have a problem letting you draw down the extra 45k. You will need to go back to the mortgage advisor, plans change and if you are approved for 395k I dont see why they wouldnt give it to you as long as youre going to do up the house and not blow the 45k on a week in Las Vegas!


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    #3
    MojoMaker
    Registered Users Posts: 4,594 ✭✭✭MojoMaker


    The LTV ratio might argue otherwise.


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    #4
    Gurgle
    Closed Accounts Posts: 5,064 ✭✭✭Gurgle


    coluter wrote:
    I am hoping to get on the property ladder and am planning on buying a 2 bed old terrace property with a mate of mine and doing it up. We have been approved for a mortgage of 395,000 which would get us the place. The place in fact will most likely be about 350000. My question is, does anyone have any advice how we get our hands on cash to do it up baring in mind we will require a mortgage 45k below what we were approved for. We would most likely need to put about 20k into it. We have 10k saved which would have to be go on stamp duty...

    any advice would be really appreciated, cheers...
    My advice would be to tread carefully with that plan and consider everything.

    Sounds like you plan to buy & sell the property in a relatively short space of time.

    You're spending 350k on the house, 10k on stamp duty and 20k on doing it up.

    You are also selling your 'right' to the ftb rate on stamp duty. Thats worth a good few grand too, and you will miss it when you want to buy a house to settle in.

    You would have to sell at a minimum of 390k to break even, and thats just barely allowing for estate agent and solicitor's fees.

    And all this at a time when house prices are somewhere between stagnant and slowly falling (even plummeting according to some ;) ).


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    #5
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Gurgle wrote:

    You would have to sell at a minimum of 390k to break even, and thats just barely allowing for estate agent and solicitor's fees.


    Thats an amazing price for a two bed terrace - stamp duty on top - with the way the market is at the moment - I really do think the times of doing a place up and selling it on for a nice profit are truly behind us.


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