Want to carry out improvements to the property, such as placing a boiler, or installing a new kitchen/bathroom? If so, this process will involve renovation costs. You can pay for these costs yourself, but you can also have these costs financed. How does to financing of renovation activities work?

1. Construction specification

Create an overview of your plans and costs using a construction specification. The specification should be a realistic estimate, but does not have be 100% accurate.

2. Appraiser

Give the construction specification to the appraiser (please note: the costs of a renovation must be determined on time and must be as complete as possible).

3. Market value after renovations

On the basis of the specification, the appraiser will include the value of the property post renovations in the appraisal report. This value may be used in determining the maximum lending capacity on the basis of the property (in 2024: 100% of the property’s market value).

Confinancing renovation

Please note: renovation usually does not mean a one-on-one increase in value. For example, there may be a difference between the market value before and after renovations when compared to the renovation costs. Insofar as the renovation costs do not lead to a value increase, you must be able to prove that you are able to finance this difference with your own money.

To gain a quick and accurate insight into the costs, we recommend to provide your consultant with an accurate construction specification as early as possible so that the appraisal process may be initiated.

4. Finalize the financing scheme

Once the costs and the post-renovation market value become clear, the financing scheme can be finalized and financing may be requested.

5. Construction deposit

The complete costs of renovation in accordance with the construction specification will be stored in a construction deposit. This amount will only be made available once the actual work activities will be carried out. This requires several declarations. Any remainder is generally used to pay off the loan.

Tip: currently not thinking of renovating your home, but maybe in the future? Always keep a higher registration fee in mind.

Contact our advisors

Tell us in advance about your renovation plans. We will gladly create a convenient overview of the possibilities and costs. Will will also helps you acquire an appraisal report that closely fits your plans and the necessary financing.

Contact us