Browse Forums Home Finance Re: Partially completed house? - Value? 3Jan 26, 2011 12:52 am ballagirl Hiya, The story so far? -Renovating and extending a house. -Got it to lock up ourselves. Financed it with approx $50K of our own money -We have no kitchens/bathrooms -Only purchased the existing house & land mid year - borrowed 79% LVR at that time What I am desperate to know is? If we get a bank out to value it as it stands, exisitng home (5 rooms/no amenities) + extension to lock up (site works, excavation, stumps in, subfloor,frame, windows in, weatherboards and tin roof on) How will they value it? Our purchase price (from mid year + improvements) ? And is this done by adding the hard costs of what we have spent ? We are really hoping to borrow 80% of a "new" value and pull enough equity out to complete to occ permit and then top up for finishing......The bank our broker has suggested apparently is ok with homes under construction, but I am unsure if this is when it is in conjunction with an OB construction portion and of course for this we can only get 60%LVR and I am not convinced a valuer will apply the end market value we need, as our home will be hard to get comparisons on? I am ready to cry, this is so stressful! Not even sure if that made sense??? Ta - It is hard, as most bank valuers tend to lower the value for any "unfinished" renovations. really you have 2 options that i can see. 1. Ask for a cash out up to 80% of "old/initial home value" - with cash out for renovations - the bank will need proof and will only give you the cash in part instaltment based on what needs to be done first. End of the day it's in the banks interest to let you finish off your renovation because if you default on your loan becasue you couldn't finish off your renovation and the home is not livable they will not have a "sellable" secuirty anymore 2. Do the valuation, if it comes short, depending on the bank your with, some bank like macqauire bank allows and give you the ability to argue and dispute the valuation and you can apply for your own licensed valuer as well. Pm if you want some contact on good and understanding valuers. Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Any advice on a builder in NSW who is demanding an extra 22000k after the house is completed and contract paid in full .Standard HIA contract. Never received a variation.… 0 20501 As a tradesmen get a private inspector although I don't think there worth it in their profession themselves the reminder they serve to the tradesmen doing the work is… 3 27344 They make the room much easier to clean for one, reflect more light (if light colour tiles are used), and you dont end up with dust on the top edge of tiles (cause most… 3 9578 |