Increase the value of your home
Renovations can significantly increase the value of your property. Could your kitchen benefit from an extension, or are you looking to have a dormer window fitted? These are some of the improvements that will add value to your home, and, an increase in the value of your dream home is not only good for you but also if you’re looking to finance your renovation through your mortgage.
In order to determine exactly how much you can include in the financing, the lender will take into account the value of your house after the renovation, compared to its pre-renovation value. Both values are defined within the appraisal report. To determine the value of your house after renovation, you will need to itemise the work that is going to be carried out in a home improvement specification. This itemisation must list those exact aspects that you are renovating, along with the associated costs. As a buyer, you can draw up this itemisation yourself. The lender will decide how much you can include in your mortgage on the basis of these documents.
Usually, you can include about 70% of the renovation costs. The exact amount will be stated in the appraisal report.