Mortgage Advice

novaboy80

Hi there, I inherited an old cottage (1920-) in Co. Limerick from my uncle about 5 years ago, which my wife and I now live in. Long story short, it was purchased by my uncle through the county council and is paid for in full. The cottage needs to be brought into the 21st century and while we're at that we would like to build on an extention, to be honest the cottage is so small we will really be building on another full house almost. My questions are as follows.
Are extentions to existing houses covered by mortgages or would we only be able to get a higher interest rate home improvement loan? A friend /builder told us that €105k should get us what we want. Im wondering about how much of a deposit we'd need if we're granted a mortgage, are there any grants available as the cottage is almost 100 years old, what fees are we likely to face before one block is even laid, and any other things we may not have considered.
Any advice appreciated and thank you in advance.

Sausage dog

The fact that you already own your own home means this is equity which you have. This may be enough rather than having to have a deposit (as you would need for buying a house with a mortgage.) With a stage payment mortgage for renovating, the bank will usually hold off releasing the last stage payment until all work is completed. You will probably need some of your own savings to cover this gap where you will have paid for work done, new kitchen, flooring etc. before the bank releases the final payment.

Sausage dog

Check out planning requirements. An extension may not require planning, depending on size & location and this might help keep costs down.

novaboy80

Sausage dog wrote: »

Check out planning requirements. An extension may not require planning, depending on size & location and this might help keep costs down.

Thanks, it's a long road ahead I'm sure.