A construction depot of Hyra Hypotheken
Sometimes, a (sustainable) renovation is wanted or needed, before a property can be let. In that case, a construction depot is necessary. Hyra Hypotheken can also meet that need. Below you will find the essentials and terms of a construction depot of Hyra Hypotheken.
What is a construction depot?
Where there is a plan to (sustainably) renovate a property, you will need to borrow extra to pay for these additional costs. A construction depot or deposit may be needed. With this loan, you can pay for the renovation.
Is a construction depot mandatory?
That depends wether the conversion is desirable of necessary. Where the maintenance and/or structural status is ‘poor’ or ‘bad,’ financing can only be provided if the property is to be renovated and the surveyor and building expert confirm that once renovation has taken place all parts of the property will be deemed at least ‘reasonable.’ A construction deposit equivalent to the cost of renovation is required in these circumstances.
Renovation plans must always be assessed by a surveyor in advance, included in the valuation report, and approved by Hyra Hypotheken. The borrower(s) must also demonstrate sufficient assets to be able to bear the loan costs for the duration of renovations.
