I recently purchased a 65 year old house on a nice lot. My original intention was to tear down the property and construct a new one. However, my ignorance made me believe this was possible.
I came to realize that bank will not give me a construction loan or allow me to tear down the property when I owe them money on the house. I'm not sure in this process what options I have other than selling the house off next year and buying a sub division kind of house.
I wanted to know if I can utilize the existing house which is a back split and seek permission from the bank to allow me to do a type of addition but in reality to strip the house to maximum allowed and construct around it? Is this possible? If yes how do I go about doing it?
Only looking for advice at this time.
Don't give up yet. The city will allow for a certain portion of your house to be tore down, and rebuild. I've done a couple of jobs, where we removed the roof and 2 outside walls, and it still was called a renovation. I cant recall the percentage of the original house can be left, and balance reno'd.
That's something that you could bring up an my architect. I would imagine that different municipalities have there own guide lines
There are many options available to you from banks and mortgage brokers that will enable you to do a significant renovation on your home, or even tear down the home in its entirety and rebuild from scratch (even if you owe on the existing home). Most retail bankers are not familiar with the construction financing options offered by banks and other lenders, so they will limit your ability to finance your project accordingly.
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