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Funding the renovation of your dilapidated property Wed, 02 Jul 2014 15:11

One common reason for people opting to sell a problem property to a home cash buyer like Dream House Buyer is an inability to afford its renovation, particularly if it is old or highly dilapidated. Financing a property renovation often means having to borrow money. However, a mortgage is only obtainable from many high street lenders if the property is already considered habitable - which isn't the case for many renovation projects.


This makes it necessary for those with a derelict property or one in need of conversion or otherwise uninhabitable to contact a specialist lender. If your property is habitable, but run down, you may be to get a loan of 80-95% of its value as it stands, but with some funds - known as a retention - withheld until essential repairs are complete.


A surveyor will look over the property and indicate any required work, a re-inspection possibly being required prior to the release of the balance of funds, which will attract a fee. Work that you may be required to carry out typically ranges from roof repairs and damp-proofing to rewiring and repairs to central heating. While awaiting the release of retention monies, you will need to find another means of funding repair works.


For inhabitable properties, such as conversions, suitable lenders can be even harder to come by, although there are some that offer special self-build mortgages. If you do find a lender willing to fund your conversion or renovation, you can expect between 66% and 90% of the value of the property in its current condition to be advanced, the rest becoming available stage by stage with the progressive restoration of the building.


To release additional funds like this, you will need the lender's valuer to re-inspect your property, or you could produce an interim inspection certificate from a professional such as a surveyor or architect. Otherwise, to get renovation work underway and keep it going when you don't have access to stage payments, you will probably be dependent on loans, savings and credit from suppliers - or you could investigate some of the specialist lenders that offer the advance payment of stage funds.


There are many options for funding the renovation or conversion of a dilapidated property, and it pays to 'shop around' various lenders. Nonetheless, if you do find funding too difficult to obtain, Dream House Buyer gives you the option to sell the problem property quickly and with the minimum of fuss, so that you can move on with your life.


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