Renovation prior to settlement

[Erin Woods]

If the vendor allows possession and renovation by the purchaser prior to settlement, is it possible to get a lender to provide 80% of funds based in a valuation HIGHER than contract price?

Has anyone ever tried this?

 

[Qlds007]

Assuming it is a standard sale contract the answer would be No.

Purchase price / valuation whichever is the lower.

A longer dated contract (1 year plus) or an OTP purchase maybe different.

Cheers

 

[D.T.]

I did on my last one. You need to ask the vendors permission. You should also have insurance.

 

[albanga]

What happens in the event your renovation devalues the property?
A poster recently talked about turning a house into 5 bedroom which actually made the value come in much worse.

I am not imagining this to be likely but a consideration.

 

[Redom]

If the vendor allows possession and renovation by the purchaser prior to settlement, is it possible to get a lender to provide 80% of funds based in a valuation HIGHER than contract price?

Has anyone ever tried this?

No they won't allow for it to be used at settlement - best to organise the finances before renovation and then re-do the valuation for top up again after settlement.