Can I get a construction depot?
Hyra Hypotheken only offers compulsory construction deposits; voluntary construction deposits are not available. Where there is a plan to renovate a property, a construction deposit may be needed. 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.
Construction deposits are compulsory if:
- the value following renovation is required to make the financing applied for possible;
- the value prior to renovation is sufficient for the financing applied for, but the property’s maintenance status is ‘poor’ or ‘bad’;
- the surveyor states that the cost of overdue maintenance exceeds 10% of the property’s value, the architectural report states that urgent repair work is required.