Renovation & Conversion
Financing a Renovation or Conversion
A renovation or conversion project could be the most cost effective way to get the home you want, in the area you want. It’s a real opportunity to create the most individual of homes, retaining the building’s existing characteristics while putting your own stamp on it.
There's no one size fits all solution. The way you fund your project will depend on your personal and financial circumstances, the level of works planned and whether you own the property or not.
If the property is run down but habitable (has a working bathroom and kitchen) and needs some minor improvements, a traditional mortgage could be an option. However most lenders will only lend up to 80-95% of the current value of the property and may withhold some funds as a retention until works are complete. For this to be an option, you'll need enough of your own savings for your purchase deposit and to fund the improvement works.
Stage Payment Mortgage
A stage payment mortgage is the most suitable borrowing option if the property is not habitable, or you need help to fund both the property purchase and improvement works.
Your borrowing capacity is not limited by the current value of the property. You can potentially borrow 85-95% of the property purchase and improvement costs, up to a maximum of 85% of the expected end value of the property when works are complete.
Since the first stage of this type of development often results in the property being devalued because of removal or repairs to the roof, windows and remedial work to the superstructure, it is likely a valuation stage, or arrears stage payment mortgage will not be suitable because it relies on a property's value increasing after every stage is complete.
Cost Based Mortgages
BuildStore's exclusive mortgages can provide guaranteed stage payments based on your build costs before each stage of works - giving you certainty in your budget and the funds you need to get the job done.