Financing a renovation. I am looking

08/02/2017 - 16:34

Financing a renovation. I am looking into buying a holiday house that needs a thorough renovation (roof, floors/ceilings, installing kitchen/bathroom, heating, redo electricity, install septic, etc.). I would buy it for a modest sum - perhaps €20,000 - and then would need to put €100,000+ into it to make it liveable. I have tried to find information on what sort of loan is available for unliveable houses to renovate, but cannot seem to find much. Does anyone know what sort of limit do they put on these types of loans?Also, since I am self-emplyed, I read on one site that I need 2 tax declarations. I only started my company last year so only have one at the moment. I might be able to self-finance a good amount of it - perhaps €115,000 out of the €185,000-190,000 needed (there is one outbuilding that also needs to be redone). But in these cases, is one able to renovate up until the provided amount and then borrow against the semi-renovated house in order to pay for the remaining renovations? Or is it badly viewed? If it is possible, do they lend up to a certain amount of its value - like 70% or 80%?Many thanks for any guidance.



Thank you. So if I understand correctly, one is able to get a mortgage to restore as long as the property is valued at €100,000 or more? And it would be possible to get such a mortgage even one year after the purchase of a house? Or would that then be considered a "re-financing", though it was not financed through a bank to begin with.I am looking at buying a house for €20,000, for example. The restoration costs plus all of the fees (estate agent, geometra, permits, etc) look to total around €180,000. If I put in €100,000 of my own money and the house is valued at that mid-restoration, then if I qualify financially, I should be able to get up to €70,000 to finish the restoration. Is that correct? What if the house will only be worth €160,000 at the end of the restoration? Does that mean I will not get a mortgage at all because mortgages must be at least €100,000?I guess I am confused as to what must be worth €100,000 or more. Thanks again.    

Hi reply point to point -Minimum amout for mortgage to restore 100.000-euro - as for my experience (19 years ..)Mortgage to restore you can ask at any time - or as Buy+ restore - or as Restoration only at any time after purchasing  time - is only needed MINIMUM one month  after purchasing  , because Notary , according italian laws ,use 15 days to purchasing Deed registration , and if the property do not is scheduled on yr' s name - bank do not can start mortage procedure -Restoration expenses Do not are geometra , Real estate agent , permit - BUT only effective expenses scheduled on the  Computo metrico, issued by yr's Geometra/engineer /Architect  , Exactly calculation you can read at  web site page .But an simple example is1> bank survejor find the commercial value on yr's home after full restoration for 200.000-euro2> you can ask til 70% of this 200 k  = 140 k -3> you has to show ( NOT DEPOSITT , only Show ) existance of 200-140 = 60k )4> obviosly you has to have income for pay mortage monthly installmentThe matematic calculation for this(4) is your NET income ( gros income from income tax return decreased by tax payed ) x 30% , splitted in 12 (months ) = result = your available monthly income to pay  mortgage installmentfrom this NET  monthly income - you has detract innstallment that you pay for other mortgages/ lease/ private loans - payments upper than 50 euro monthly .The result is the sum that you are available to pay mortgage installmenti hope this is clear for you .(sorry for languages mistakes...)   

Thank you very much. So, when you say a minimum amount to restore, you mean one needs a house that is valued at €100,000 or more? It does not mean that one must take out a mortgage or loan of €100,000 or more. Is that correct?I am asking because if I put €100,000 into a house (and it is valued at that when the bank checks it), but after complete restoration, it will only be valued at €180,000, then I would not qualify because I would only need €80,000, not €100,000. Does that make sense? However, if the house must be worth €100,000 then it is more possible.Thank you!

1> MORTGAGE AMOUNT MEAN AMOUNT OF THE MORTGAGE , NOT PROPERTY VALUE !so  the 100.000 is amount of mortgage , not home value !!2>  Property commercial value by bank survejor expertise .MEAN the value that the bank survejor decides that it is the value of the home - maybe you sell or buy the house for a different value - but for the bank the value on which to calculate 70%, which then will be the maximum loan you will give - is the value established by Survejor commissioned by the bankeven if this make to you a no sense , this is the bank law - 

I have heard a lot about individual financing programs for people who are going to buy property in Italy with a mortgage. But not everything is so transparent there. We took out a mortgage on the house, but it did not include repairs. We decided to contact the Fit My Money website for advice to learn more about how best we can proceed and where to get more money for repairs. We had a good credit rating, so we had no doubt that we would succeed. We recommend sites like Credit Karma so you can choose among other companies.