Does lender care if windows are boarded up

Discussion in 'Loans & Mortgage Brokers' started by Carol M, 6th Jan, 2020.

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  1. Carol M

    Carol M Well-Known Member

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    Newcastle NSW
    Hi,
    I want to buy a cottage which is in OK condition except several windows are boarded up, and kitchen is missing a stove. Can find no online sales history so I suspect bank may want a full valuation, or perhaps look at the "for sale" photos, which clearly show what is lacking.
    Will any lenders consider this, maybe at 80% LVR. It is way under market value, probably land value only.
    I could try to put an option on it, and fix these things myself, which would not cost much. I know people do these things, but am hoping a lender out there may not be so picky. i.e. if works needed are just a few thousand $ and/or a quote is shown for work, would that suffice.
    All ideas are welcome.
     
  2. Travelbug

    Travelbug Well-Known Member

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    I had difficulty when I bought a burnt out house. Difficult to get lending if the property is not habitable. The price was land value. So borrowing 80% of land value. They agreed to the lend 2 weeks before settlement.
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Needs a kitchen and bathroom. Will depend on the valuers comments
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Stove taken out due to required replacement (or taken as condition of sale - amend contract appropriately).

    Windows broken due to vandalism and price negotiated on that basis
     
  5. Carol M

    Carol M Well-Known Member

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    Yes, but I don't want to put pressure on vendor in a tight market with a rock bottom price.
    I DO want to get a loan with a minimum of hassle.
    The windows do have glass on inside, so boarding is just to protect from vandals as it's empty. (Bogan shutters perhaps :)
    I could just put a temp stove from junk yard in situ to satisfy valuer, then do kitchen reno later.
    There IS a kitchen & bathroom, just no stove.
    My main concern is getting a loan.
    I did see an article suggesting some lenders will consider a construction loan for repair too.
     
    Last edited: 6th Jan, 2020
  6. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    You need it to be habitable. If the cost to make habitable is say $5K and you can show the lender you will have the extra $5K post settlement should not be an issue. This is assuming LMI is not involved if it is then I would not attempt.
     
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  7. Carol M

    Carol M Well-Known Member

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    Newcastle NSW
    Thanks for advice, have decided not to proceed as apparently a major reno is required. Shame, as profit would be huge, even after big reno costs.
    Cheers.
     
  8. DaveM

    DaveM Well-Known Member

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    I have had no issues with clients purchasing when missing a stove or with windows boarded, so long as the contract price reflects this