Site and renovation

ak47kk

Hello Everybody

Looking for some advice on the following before i approach the bank.

I am currently a home owner in an estate on outskirts of city. Myself and the other half are looking to buy site and build soon(ish)

Ive recently come across a site (1.5 acre) that already has an old farmhouse built on it. The farmhouse is about 1200sq ft and needs total refurbishment. The site and house is for sale for 95k which we can easily afford.

We would however need to extend also and double the size of the house.
My questions is, is there a way that we can buy the site/house now and later do the work that we want and need. We plan to stay living in current town house at the moment.

If anyone has any advice i would really appreciate.

Again, this is all pre lim stuff before i meet the bank next week.

Calahonda52

yes, just buy it like buying anything else, do the paperwork pay the mula: voilia

ak47kk

Calahonda52 wrote: »

yes, just buy it like buying anything else, do the paperwork pay the mula: voilia

Thanks Calahonda i guess

I suppose i was not very clear. We can afford to buy the property by getting a joint mortgage and the repayments are easy to make.

I want to know if in a few years We would be able to borrow to extend and renovate (estimate 220k ) for this.

Or would i need to sell my current house to fund renovations?

BryanF

ak47kk wrote: »

Thanks Calahonda i guess

I suppose i was not very clear. We can afford to buy the property by getting a joint mortgage and the repayments are easy to make.

I want to know if in a few years We would be able to borrow to extend and renovate (estimate 220k ) for this.

Or would i need to sell my current house to fund renovations?

This is the construction forum. Is the question above really for your bank manager ?

Ps 220k to completely Reno an old 1200sqft farm house and add same size ext, is some estimate!

ak47kk

BryanF wrote: »

This is the construction forum. Is the question above really for your bank manager ?

Ps 220k to completely Reno an old 1200sqft farm house and add same size ext, is some estimate!

Sorry Bryan, New to posting, just looking for some help. But i guess it is a bank managers question, just trying to figure out a few bits before i go in next week.

The estimate was by her father who has been a builder for 35 years, not my own estimate!

Try get up on the other side of the bed tomoto

Lumen

I'd imagine the bank would be interested in what the minimum spend is to make it habitable and planning compliant, and the value of the property at that point relative to the loans at that point, rather than what sort of dream house you eventually want to turn it in to.

Calahonda52

the other point is that while you may spend 200+k on the work, the house may not be worth that depending on LOCATION.
therefore the equity piece will need to cover that plus a bit more so my guess, as an accountant is that they won't lend.
Ability to service the debt is just one aspect, asset cover, aka loan to value, is another.

ak47kk

Thanks guys ☺️