Are you buying a house that needs renovation? Do you have a way of funding the renovations? In Ireland, there are many different ways of funding renovations. These include taking out a credit union loan or a bank loan after completing the purchase of the property. If you do not want to incur high loan interest rates, you may opt to save some money and gradually do renovation once you move into the new house. Additionally, you can also borrow money for the renovation as part of the mortgage. 

Before you think of all these, is the house habitable? Does the bathroom, kitchen and heating work? If it is not habitable, the only option you have is getting the mortgage provider to lend you the money to renovate. It is important to note that you will not be given a mortgage on a house that you cannot live in with the claim that you plan on renovating at a given point in time. In Ireland, there are two types of house renovation. These include, structural and non-structural renovations. Both of these types are different in relation to mortgages. 

Non-structural renovation are basically cosmetic renovations like the installation of new doors, new bathroom, new windows, or a kitchen upgrade. To get funds to make your new house habitable, a mortgage lender has to be made aware of the type of work that you plan to do in the house. As part of the mortgage application, the process involves a two major valuation stages that have to be undertaken by the same valuer. The first valuation offers a current value suppose the renovation is done. On the other hand, the second valuation verify that the renovation has been done on the house. The value of the property has to increase as a minimum in accordance to the expenses incurred during renovation. The money needed for non-structural renovation will be held back until the renovation is done. This means that you will need to fund the renovation upfront and get back the money from the lender when the work is complete and confirmed by the valuer.

Structural renovation are those renovations that need something added to the house or removed. As compared to non-structural renovations, you will need expert service providers like an engineer or architect to supervise the work and approve the costs and charges involved. In the case where there is a need for planning permission, the mortgage provider has to be aware that you will be applying. Additionally, you should be beginning the renovation within the first six months of the first mortgage drawdown. Just like non-structural works, the money needed to cover structural renovations is held back until the renovation is done. Despite this being the case, money is released in stages for large renovation, once the architect signs off the work.