Mortgage for uninhabitable house

marathonic

I've done some searches and most of the threads are pretty old and, as we are all aware, the banks lending criteria are changing from month to month.

I believe some banks are still lending for self builds but I'm not sure what the story is for uninhabitable houses - needs electricity reconnected, bathroom, kitchen, windows replaced, new flooring, replastered, etc.

Assuming it's possible, I'd get a quote for a complete refurbishment from a relative, who is a contractor.

A similar house is on the market with a current offer of €170,000 and a 'back of the envelope calculation' puts the refurbishment costs at €70,000.

The house is on the market with an asking price of €90,000 and the cash available is €100,000. An offer of €80,000 should secure it giving a final cost of €150,000.

Therefore, the house would be bought with cash and €20,000 would be available towards a total refurbishment cost of €70,000 - requiring a mortgage of €50,000.

The question is, are banks entertaining lending in such circumstances? If so, I'll have the refurbishment cost properly estimated and take it from there. If not, it's back to the drawing board.

johnnyskeleton

Maybe, but don't ask me ask your bank.

Banks don't just lend on the property they lend to the person.

For a mortgage they would probably want to do it the other way around - use the mortgage to buy the property and use the cash to refurb.

bombadil

You shouldn't have too much problem by the sounds of it... With a mortgage of 50000 on a 170000 house bank will have plenty equity in the property. I found BOI very unhelpful in a similar situation and would suggest trying AIB instead.